The Impact of Juvenile Conviction on Human Capital and Labor Market Outcomes

Abstract

This article documents the long-term relationship among juvenile conviction, occupational choices, employment, wages, and recidivism. Using data from the National Longitudinal Survey of Youth 1997 (NLSY97), we document that youth convicted at or before age 17 have a lower full-time employment rate and lower wage growth rate even after 10 years in the labor market. Merging the NLSY97 with occupational characteristics data from the Occupational Information Network (O*NET), we show that youth with a juvenile conviction are less likely to be employed in occupations that have a high on-the-job training require-ment and that these occupations have higher wages and wage growth. Accumulated occupation-specific work experience, general experience, and education are important for explaining the gaps in wage and recidivism between youth with and without a juvenile conviction. Our results highlight the important role of occupational choices as a human capital investment vehicle through which juvenile crimes have a long-term impact on wages and recidivism.