Local Labor Market Inequality in the Age of Mass Incarceration

Abstract

We contend that the rise of mass incarceration in the United States can be framed through the lens of stratification economics, which views race- and class-based discrimination as a rational attempt on behalf of privileged groups to preserve their relative status and the material benefits which that status confers. Using the first (to our knowledge) local-level data set on incarceration rates by race, we explore the relationship between income inequality, poverty, and incarceration at the commuting zone level from 1950 to the present. Consistent with Michelle Alexander’s hypothesis that expansion of the penal system and the rise of “tough on crime” policy were efforts by privileged groups to drive a wedge into working-class political coalitions formed out of the Civil Rights Movement, we find that labor markets with greater inequality experienced larger increases in the overall incarceration rate. Furthermore, we find that relative rates of poverty play a key role in explaining differential effects of mass incarceration across race. Areas where White poverty rates were large relative to non-White poverty rates experienced no significant change in White incarceration, but an expansion of non-White incarceration. These findings have implications for policies related to economic and judicial systems.