Does crime affect employment status? The case of indigenous Australians

A significant cost for individuals who have contact with the criminal justice system is the potential effect on employment status. In this study the effect of arrest on the employment status of indigenous Australians is examined using data from the 1994 National Aboriginal and Torres Strait Islander Survey. Having been arrested is found to reduce the probability of employment. The size of the effect is estimated to be between 10% and 20% for males, between 7% and 17% for females. The effect also varies according to the reason for a person's most recent arrest. Differences in arrest rates between indigenous and non-indigenous Australians may explain about 15% of the difference in employment-population rates between those groups.