Table 4

Minimum Wage and Recidivism Rates

1 Year3 Year
Min. wage−0.0091**
Wild bootstrap p0.0780.0480.0090.013
Mean recid. rate0.1730.346
  • Notes: The dependent variable is return to prison in the same state within one or three years of release (indicated in the column heading). Minimum wage is measured in nominal dollars in the state and month the offender was released. All specifications include state and year fixed effects, as well as the individual and time-varying state-level controls outlined in Section III. State EITC policy is included as a dummy variable, but its coefficient is not shown. See Table 6 for those result stratified by gender. Mean recidivism rates are the mean of the dependent variable for the respective column. Robust standard errors clustered at the state level are shown in parentheses (43 clusters). p-values from 1,000 wild-cluster bootstrap iterations are shown for the main minimum wage coefficient as suggested by Cameron et al. (2008) in cases with a small number of clusters, typically ≤30 (our analysis is near but not belowthis threshold).

  • * p < 0.10,

  • ** p < 0.05,

  • *** p < 0.01 (based on cluster-robust standard errors).