Ex-Offender Employment, Recidivism, and Manpower Policy: CETA, TJTC, and Future Initiatives

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Abstract
Over the past several decades, there have been many programs to reduce the continuing high level of ex-offender unemployment. These policies were often part of broader federal efforts to improve the labor market position of the disadvantaged. However, these traditional labor market policies have had disappointing outcomes, leading to dissatisfaction and skepticism about programs to alleviate ex-offender unemployment. This article reviews federal ex-offender employment initiatives with particular attention to the Targeted Jobs Tax Credit (TJTC), a program providing employers with tax deductions for hiring ex-offenders. Our analysis indicates that this credit (like other employment programs for ex-offenders) has had marginal impact at best. We suggest reasons why this is so, focusing on the specific problems of employing ex-offenders, and the general weaknesses of targeted employment strategies that rely on tax incentives. We conclude with some speculations about possible new directions for ex-offender employment programs.