The Varying Effects of Incarceration, Conviction, and Arrest on Wealth Outcomes Among Young Adults

• In Event: Consequences of Incarceration for Economic Stability Across the Life Course

Abstract

How do interactions with the criminal justice system influence wealth accumulation among young adults? Previous research using NLSY79 data indicates that incarceration leads to declines in rates of homeownership and net worth among baby boomers, but questions remain as to how other interactions with the criminal justice system affect wealth outcomes. Using data from the 1997 cohort of the National Longitudinal Survey of Youth, we expand on previous work and study how arrests, convictions, and incarceration periods influence a variety of wealth outcomes among younger adults. In particular, we investigate how wealth accumulation between the ages of 25 and 30 varies across individuals with a previous incarceration, conviction, or arrest. We emphasize a broad conception of wealth and include six outcome variables as measures of wealth accumulation: home ownership, total net worth, any financial assets, logged total financial assets, any debt, and logged total debt. Although most interactions with the criminal justice system were negatively associated with future wealth in our preliminary analyses, incarceration presented some of the strongest effects. Our findings lend further support showing that incarceration, along with other interactions with the criminal justice system, can act as absorbing statuses, potentially leading to the accumulation of disadvantage.

Authors

• Michelle Maroto, University of Alberta

• Bryan Sykes, University of California, Irvine