The Effect of Arrest on Indigenous Employment Prospects B

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The Effect of Arrest on Indigenous Employment Prospects B CRIMEB U R E A U O ANDF C R I M E JUSTICE S T A T I S T I C S A N D R E S E A R C H NSW Bureau of Crime Bulletin Statistics and Research Contemporary Issues in Crime and Justice Number 45 June 1999 The effect of arrest on Indigenous employment prospects B. Hunter1 and J. Borland2 The effects of criminal conviction on an individual’s employment prospects are a matter of policy significance, especially for Australian Aboriginals who are overrepresented both among the unemployed and among those who come before the criminal justice system. 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 significantly reduce the probability of indigenous employment by 18.3 and 13.1 percentage points for males and females respectively. 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 per cent of the difference in the level of employment between those groups. Promoting diversion options should be a priority for governments keen to break the nexus between indigenous unemployment and crime. INTRODUCTION and results the reader is referred to the The potential effect of arrest on full report (Borland & Hunter 1999). employment outcomes of indigenous Criminologists have long been interested There are a number of reasons why Australians is of interest for a number of in the relationship between unemployment linkages might exist between arrest or reasons. First, it may be important for and crime but have historically spent crime and employment. Arrest may understanding differences in employment much more time examining the effect affect a person’s employment outcome. outcomes between indigenous and other of unemployment on criminal behaviour A person who has been arrested and/or Australians. Arrest rates for indigenous than the effect of a criminal conviction on convicted of an offence may be Australians are significantly greater than an individual’s employment prospects. stigmatised by employers and hence be for other Australians – for example, in This second issue is particularly salient less likely to obtain employment. 1994 indigenous Australians comprised for Australian Aboriginals who are Alternatively, employers may be deterred 2.6 per cent of the population in Western overrepresented among both the from locating in regions with high levels Australia yet accounted for 20.2 per cent unemployed and those who have been of criminal activity and hence there may of total arrests (Broadhurst 1997, p. 426). arrested. be limited employment opportunities for Hence, if having been arrested has a Preliminary analysis of the 1994 National persons living in those regions. There negative effect on a person’s probability Aboriginal and Torres Strait Islander are other possibilities as well. Contact of employment, the disparity in arrest Survey (NATSIS) indicates that arrest is with the criminal justice system may rates may explain part of the difference in affect a person’s motivation to work, or one of the major factors underlying the employment outcomes between perceptions of the expected benefits from poor employment prospects of the indigenous and other Australians. seeking employment, and hence lower indigenous population (Australian Bureau the probability of employment. of Statistics 1996a; Hunter 1997). Second, understanding the relationship between an individual’s arrest record and Unfortunately, these early studies could It is important to bear in mind, though, not determine the direction of causality that, not only can a person's arrest history employment outcome provides an insight between arrest and employment. This affect the likelihood of being employed, a into the social costs of contact with the bulletin reports on the results of a person’s employment outcome may also criminal justice system for indigenous statistical analysis which examines how affect the likelihood of being arrested. For Australians. This seems particularly having an arrest history affects an example, a response to being unable to important where there is a possibility that Australian Aboriginal’s employment obtain employment may be to engage in much of this contact for indigenous status. The bulletin provides an overview drinking which increases the probability of Australians arises from differential of a detailed study conducted by the being arrested for offences relating to treatment of indigenous and non- authors. For further details of the analysis drunkenness. indigenous Australians rather than 1 B U R E A U O F C R I M E S T A T I S T I C S A N D R E S E A R C H differences in behaviour (see, for Table 1 shows the aggregate Table 3 shows the reasons for the most example, Gallagher & Poletti 1998). employment/population rate,3 and the recent arrest. The most common In this bulletin we use data from the employment/population rate reasons for arrest relate to drinking – NATSIS to examine the determinants of disaggregated by arrest record and by 23.1 per cent of males and 6.6 per cent employment outcomes for indigenous type of employment – in Community of females had charges for drink driving Australians. The NATSIS was Development Employment Projects or drinking in public in their most recent undertaken by the Australian Bureau of (CDEP) employment and in non-CDEP arrest in the previous five years. Theft is Statistics (ABS) in April to July 1994 in employment. The CDEP scheme is a a relatively minor component of response to a recommendation by the Commonwealth government program indigenous arrests. Given that theft is Royal Commission into Aboriginal under which unemployed indigenous the only category of indigenous arrest for Deaths in Custody (Commonwealth of persons of working age forego individual which there may be a pecuniary Australia 1991). The NATSIS covered a entitlements to unemployment benefit incentive, the preponderance of total of 4,205 households, which yielded payments in return for a grant to their indigenous arrests are not for offences 15,726 indigenous respondents, 3,076 local community council which is used to committed for financial gain. non-indigenous persons living in the fund job creation in community same household as an indigenous development activities.4 person and 158 prisoners (Australian DESCRIBING EMPLOYMENT Bureau of Statistics 1996b). For our Table 1 shows that the employment/ IN THE CONTEXT OF HIGH analysis a restricted sample was selected population rate is lower for persons who ARREST RATES from the NATSIS. First, only working-age had been arrested than for persons who members of the population (15-64 years) had not been arrested in the five years The aim of our analysis is to determine who were not in full-time schooling were prior to the survey. It is also evident that the effect of an arrest history on an included. Second, persons who were in this pattern in aggregate employment is Australian Aboriginal’s chances of being prison at the time of the survey were solely due to the fact that those with an employed. One issue which arises in excluded; this group represented 1.8 per arrest record are much less likely to be analysing arrest data from a self- cent of the total sample population. found in non-CDEP employment. There were 8,402 respondents in this response survey is the possibility of restricted sample. The sample was Table 2 presents information on the under-reporting of arrest. For example, further reduced to 7,568 persons after proportions of the indigenous population Freeman (1994, p. 16) notes that it is deleting observations that did not have a arrested in the last five years by selected common to find under-reporting of crime complete record of all the information characteristics. The table shows that in the United States by black youths. To required for the analysis. 33.3 per cent of males, and 11.2 per cent examine potential under-reporting of of females, had been arrested in the last arrest by indigenous Australians we are five years. For those arrested the restricted to a comparison between LABOUR FORCE average number of arrests is 3.0 for NATSIS data and official police data for CHARACTERISTICS males and 2.2 for females. Generally, Western Australia as this is the only AND HIGH INDIGENOUS males in younger age groups and with State which reports official police arrest ARREST RATES lower levels of educational attainment data disaggregated by indigenous and have the highest incidence of arrest. non-indigenous persons. Estimates We begin with some descriptive There does not appear to be any pattern based on the official police data indicate information on employment and arrest in the incidence of arrest for persons that the proportion of indigenous persons experience for the indigenous population. living in different regions. arrested in Western Australia between Table 1: Labour force status by whether arrested in past five years, Indigenous Australians aged 15-64, 1994 Males Females Not arrested Arrested Not arrested Arrested Employment status (%) (%) (%) (%) Employed-total 55.5 40.9 31.3 22.5 CDEP 19.2 21.5 9.6 10.9 non-CDEP 36.3 19.4 21.7 11.6 Unemployed 23.0 39.4 15.7 32.3 Not in labour force 21.5 19.7 53.0 45.2 Total 100.0 100.0 100.0 100.0 Number of observations 2,628 1,217 4,071 486 Source: NATSIS, unit record file. 2 B U R E A U O F C R I M E S T A T I S T I C S A N D R E S E A R C H Table 2: Arrests in last five years
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