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Title: The Absorbing Status of Incarceration and its Relationship with Wealth Accumulation
Resulting in 1 citation.
1. Maroto, Michelle Lee
The Absorbing Status of Incarceration and its Relationship with Wealth Accumulation
Journal of Quantitative Criminology 31,2 (June 2015): 207-236.
Also: http://link.springer.com/article/10.1007/s10940-014-9231-8
Cohort(s): NLSY79
Publisher: Springer
Keyword(s): Home Ownership; Incarceration/Jail; Modeling, Mixed Effects; Net Worth; Wealth

Permission to reprint the abstract has not been received from the publisher.

Objectives: This study extends our knowledge on the negative effects of incarceration to the accumulation of wealth by examining whether, how, and how much incarceration affects home ownership and net worth. It also investigates how these outcomes vary with the time since a person was incarcerated and the number of incarceration periods, along with addressing potential mechanisms behind this relationship.

Methods: I apply hybrid mixed effects models that disaggregate within- and between person variation to investigate incarceration’s relationship with home ownership and net worth, using National Longitudinal Study of Youth data from 1985 to 2008. I also incorporate a set of mediation models in order to test for indirect effects of incarceration on wealth through earnings, health, and family formation.

Results: My results show that incarceration limits wealth accumulation. Compared to never-incarcerated persons, ex-offenders are less likely to own their homes by an average of 5 percentage points, and their probability of home ownership decreases by an additional 28 percentage points after incarceration. Ex-offenders’ net worth also decreases by an average of $42,000 in the years after incarceration.

Conclusions: When combined with previous research on incarceration, my findings show that incarceration acts as an absorbing status, potentially leading to the accumulation of disadvantage. Although incarceration’s negative effects on wealth accumulation were partially mediated by its relationship with earnings and family formation, incarceration directly affected home ownership and net worth. In most cases, former inmates began with flatter wealth trajectories and experienced additional losses after incarceration.

Bibliography Citation
Maroto, Michelle Lee. "The Absorbing Status of Incarceration and its Relationship with Wealth Accumulation." Journal of Quantitative Criminology 31,2 (June 2015): 207-236.