Does crime affect employment status? The case of indigenous Australians

A significant cost for individuals who have contact with the criminal justi ce system is the potential effect on employment status. In this study the e ffect of arrest on the employment status of indigenous Australians is exami ned using data from the 1994 National Aboriginal and Torres Strait Islander Survey. Having been arrested is found to reduce the probability of employm ent. The size of the effect is estimated to be between 10% and 20% for male s, 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 betwe en indigenous and non-indigenous Australians may explain about 15% of the d ifference in employment-population rates between those groups.