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0 5 10 15 20 25 30 35 Percent 1980 1985 1990 1995 2000 2005 2010 Some College Bachelor’s Degree or More High School Less Than High School Share of Young Men With Various Levels of Education Who Were Jobless or Incarcerated CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE CBO Trends in the Joblessness and Incarceration of Young Men MAY 2016

Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

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Page 1: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

0

5

10

15

20

25

30

35

Percent

1980 1985 1990 1995 2000 2005 2010

Some College

Bachelor’sDegree or More

High School

Less ThanHigh School

Share of Young Men With Various Levels of Education Who Were Jobless or Incarcerated

CONGRESS OF THE UNITED STATESCONGRESSIONAL BUDGET OFFICE

CBOTrends in the

Joblessness and Incarceration of

Young Men

MAY 2016

Page 2: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

ears, not fiscal years.

r which those data are consistently available.

nt (GED) test are grouped with those who

ding.

www.cbo.gov/publication/51495

Notes

Unless otherwise indicated, all years referred to in this report are calendar y

The data used in the report begin in 1980 and end in 2014, the last year fo

In this report, young men who passed the General Educational Developmecompleted high school.

Numbers in the text and exhibits may not add up to totals because of roun

Page 3: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

Introduction 1

Trends in Joblessness an 1

Why Joblessness and In 2

Figure. Share of Yo 3

The Implications of Job 4

The Scope of This Anal 5

Sources of Data 5

Joblessness and Incarcerati

Exhibits 7–11

Joblessness and Incarcerati

Exhibits 13–17

Joblessness and Incarcerati

Exhibits 19–23

Appendix A: Supplemental I 24

Appendix B: Data and Metho 30

Figure. Share of Yo 32

About This Document 33

Contents

d Incarceration

carceration Increased Among Young Men

ung Men Who Were Jobless and Share Who Were Incarcerated

lessness and Incarceration

ysis

on Among Young Men, by Educational Attainment

on Among Young Men, by Racial and Ethnic Group

on Among Young Men Without a High School Education, by Racial and Ethnic Group

nformation

ds

ung Men Who Were Employed, According to Two Measures

Page 4: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal
Page 5: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

Exhibit Page

Joblessness and Incarceratio 6

1. Status of Young Men 7

2. Share of Young Men 8

3. Share of Young Men 9

4. Share of Young Men arcerated 10

5. Share of Young Men 11

Joblessness and Incarceratio 12

6. Status of Young Men 13

7. Share of Young Men 14

8. Share of Young Men 15

9. Share of Young Men Incarcerated 16

10. Share of Young Men School 17

Joblessness and Incarceratio 18

11. Status of Young Men 19

12. Of Young Men Wit ss or Incarcerated 20

13. Of Young Men Wit ss andShare Who Were In 21

14. Of Young Men Wit mployed,Out of the Labor Fo 22

15. Of Young Men Wit loyedCivilians, in the Mil 23

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Page 6: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

LIST OF EXHIBITS TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN iv

Exhib Page

Appen 24

A-1. 25

A-2. 26

A-3. 27

A-4. 28

A-5. 29

it

dix A: Ed

Ra

Ra

Sh

Sh

Supuca

ce a

ce a

are

are

plemtiona

nd E

nd E

of Yo

of Yo

ental Atta

thnic

thnic

ung

ung

l Infoinme

ity of

ity of

Peopl

Men

rmationnt of Young Men

Young Men

Young Men With Less Than a High School Education

e Who Were Jobless or Incarcerated, by Sex

in Two Age Groups Who Were Jobless or Incarcerated

Page 7: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

In 2014, the millioUnited State the ag5 million of g men1 million we ated.1

some related m treneconomic an ry impwho are jobl rceratehave lower li nings alives, on aver their cemployed or In thelower earnin uce taxincrease spen comeand the inca f thosimposes cost deral gin the future probabwould have i gaineence or educ n younsmaller econ ower t

The share of n whocerated has b . In 19young men w s or in

f joblessness and incarceration also differ racial and ethnic groups. Throughout the rom 1980 to 2014, young black men were ely than other young men to be jobless or ated. In 2014, they were roughly twice as be jobless or incarcerated as young Hispanic young white men were. The differences in ation were particularly stark: Roughly 8 per-young black men were incarcerated in 2014, about 1 percent of young white men and nt of young Hispanic men were. The racial nic differences in rates of joblessness and ation grew over the period—primarily of a large increase in the incarceration of lack men, though reduced rates of military

ment among black men also played a role.

oughout the period, among young men a high school education, those who were ere particularly likely to be without a job or ated. More than half of young black men a high school education were either jobless cerated in almost every year between 1993 4. By contrast, among young white men a high school education, the share who

bless or incarcerated peaked in 2009, after nt recession, at about one-third, and fell

1. In this repo en inclunot employ ooking funemploye ose whnot looking at is, ouJobless men ude me

re were 38s between those younre incarcer longer-terd budgetaess or incafetime earage, than in school.gs will redding on in

rceration os on the fe, they will f they hadation wheomy and l

young meeen risingere jobles

rt, jobless med and are ld) but also th for work (th do not incl

were jothe rece

o are not employed and are t of the labor force).

n who are in school.

nd less stable family ounterparts who are short term, their revenues and

support programs, e in federal prison overnment. Farther ly earn less than they

d more work experi-g, resulting in a

ax revenues.

are jobless or incar-80, 11 percent of carcerated; in 2014,

Rates of joblessness and incarceration differ among young men with different levels of education. In every year between 1980 and 2014, young men with less education were likelier than those with more to be jobless or incarcerated. For example, in 2014, about 1 in 5 young men with only a high school education was jobless or incarcerated; among young men with a bachelor’s degree or more, the share was 1 in 13. That difference was larger in 2014 than in 1980 because the rate of job-lessness and incarceration for young men with only a high school education rose considerably over that period, growing much closer to the rate for those without a high school education. (The incarcera-tion rate grew more slowly for young men with a high school education than for young men without one, but the rate of joblessness grew much more quickly for the first group than for the second.)

incarcercent of whereas3 perceand ethincarcerbecauseyoung bemploy

And thrlackingblack wincarcerwithoutor incarand 201without

de not only those who areor work (that is,

Introduction

n men in the es of 18 and 34; about were jobless, and

Those numbers and ds have significant lications. Young men d can be expected to

16 percent were (see the figure on page 3). Specifi-cally, 10 percent of young men were jobless in 1980, and 1 percent were incarcerated; those shares rose to 13 percent and 3 percent in 2014.

Trends in Joblessness and Incarceration

Rates oamong period fmore likincarcerlikely tomen or

Page 8: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

INT E JOBLESSNESS AND INCARCERATION OF YOUNG MEN 2

sligmejobabthabeexedate

WInChincyochreclocwi

EcSeincAmomwoconeattredmegro

, the military now employs more young n it did in the 1980s, and it has stopped eople who have not graduated from l. Second, the federal government has ts efforts to elicit child support pay- noncustodial fathers (who now

r a larger fraction of young men than 1980), and that increased enforcement ly made employment less attractive to g fathers, because they can now keep r earnings.5 Third, federal spending on ed benefits—that is, cash payments or fits for people with relatively low few assets—increased substantially 80 and 2014, possibly reducing young tives to work.6

nimum wages may also have increased among young men.7 The federal wage, adjusted for inflation, has not

2.

ased enforcement raised the effective marginal tax percentage of an additional dollar of earnings that able to a worker—that noncustodial fathers face.fective marginal tax rates generally discourageent. See Harry J. Holzer, Paul Offner, and Elaine, “Declining Employment Among Young Blackcated Men: The Role of Incarceration and Child Journal of Policy Analysis and Management, vol. 24, ring 2005), pp. 329–350, http://dx.doi.org/pam.20092.

ressional Budget Office, Growth in Means-Tested and Tax Credits for Low-Income Householdsy 2013), www.cbo.gov/publication/43934; and Mulligan, The Redistribution Recession (Oxfordy Press, 2012), http://tinyurl.com/hp4wu98.

ressional Budget Office, The Effects of a-Wage Increase on Employment and Family Income 2014), www.cbo.gov/publication/44995.

See Robert A. Moffitt, “The Reversal of the Employment-Population Ratio in the 2000s: Facts and Explanations,”Brookings Papers on Economic Activity (Fall 2012), pp. 201–250, http://tinyurl.com/ccu2sgb.

earnings of less educated native-born workers; see DavidCard, Immigration and Inequality, Working Paper 14683 (National Bureau of Economic Research, January 2009),www.nber.org/papers/w14683.

Universit

7. See CongMinimum(February

anges, including the recent recession and slow overy; policy changes at the federal, state, and al levels; and changes in the skills of young men th less education.

onomic Changesveral economic factors contributed to the rease in the share of young men who are jobless. ong them were longer-run trends in the econ-y, such as increases in the employment of men and the movement of some jobs to other

untries.2 The especially large increase in jobless-ss among less educated young men may be partly ributable to changes in technology that have uced demand for the labor of those young n.3 Some research suggests that a subset of that up—less educated young men who are native

1980. First, employment in the military, which had long been an important source of work for less skilled young men, fell significantly during the

Higher mijoblessnessminimum

3. See David Autor and Melanie Wasserman, Wayward Sons:The Emerging Gender Gap in Labor Markets and Education(Third Way, March 2013), http://tinyurl.com/pz26mdf.

4. For a description of the characteristics of immigrantworkers, see Bureau of Labor Statistics, “Labor Force Characteristics of Foreign-Born Workers” (press release,May 21, 2015), www.bls.gov/news.release/forbrn.htm.One recent paper has found that large-scale immigration of less educated foreign-born workers may have reduced theearnings of less educated native-born workers; see George J. Borjas, “The Labor Demand Curve Is Downward Sloping:Reexamining the Impact of Immigration on the LaborMarket,” Quarterly Journal of Economics, vol. 118, no. 4(November 2003), pp. 1335–1374, http://dx.doi.org/10.1162/003355303322552810. However, another recentpaper argues that immigration has only small effects on the

5. The increrate—theis unavailHigher efemploymSorensenLess-EduSupport,”no. 2 (Sp10.1002/

6. See CongPrograms(FebruarCasey B.

RODUCTION TRENDS IN TH

htly after that. The share of young Hispanic n without a high school education who were less or incarcerated also peaked in 2009, at

out one-quarter, though it was still close to t level in 2014. The differences were largely

cause of differences in incarceration: In 2014, for ample, young black men without a high school ucation were four times as likely to be incarcer-d as their white or Hispanic counterparts.

hy Joblessness and Incarceration creased Among Young Men anges of at least three kinds contributed to the rease in joblessness and incarceration among

ung men between 1980 and 2014: economic

born—may have seen increased joblessness because of an influx of young immigrant men with little education and high rates of employment, but the evidence is mixed.4

In addition to those long-run factors, the recent recession and slow recovery have also increased job-lessness (though not incarceration) among young men. The unemployment rate of young men increased from 3.1 percent in 2006 to 7.9 percent in 2009, and the rate rose still more for young men without a high school education.

Policy ChangesChanges in federal policy have contributed to the increased joblessness among some young men since

1990s; alsowomen thaaccepting phigh schooincreased iments fromaccount fothey did inhas probabsome younless of theimeans-testother beneincome or between 19men’s incen

Page 9: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

INT LESSNESS AND INCARCERATION OF YOUNG MEN 3

coinm

Asmwh

Though incarceration rates have ung men in all of the racial, ethnic, l groups examined in this report, een strongest for those who are less ose who are black, who already had ncarceration at the beginning of the

ncarceration of young men is itself n the increased joblessness of young o are incarcerated are less likely e employed in the future, both ve a more tenuous connection to d because they have a criminal mployers generally avoid. That have increased of late, as searchable improved employers’ ability to who have been incarcerated.10

e Skills of Less Educated

ntributing to the increase in job-ore young men may have been

ood without the cognitive and non-that employers want.11 Cognitive lly equivalent to academic skills, nitive skills include such “soft ce, punctuality, and teamwork. If ween young men and employers

8.

olzer, Steven Raphael, and Michael A. Stoll, minality, Criminal Background Checks, Hiring Practices of Employers,” Journal ofmics, vol. 49, no. 2 (October 2006),

http://dx.doi.org/10.1086/501089.

eckman, Jora Stixrud, and Sergio Urzua,f Cognitive and Noncognitive Abilities onOutcomes and Social Behavior,” Journal ofcs, vol. 24, no. 3 (July 2006), pp. 411–482,rg/10.1086/504455.

Sh

Per

SoDe

Pe

Shto

0

5

10

15

20

25

1

See Bureau of Justice Statistics, Criminal Victimization,2014 (September 2015), www.bjs.gov/content/pub/pdf/cv14.pdf (749 KB); and Federal Bureau of Investigation,Crime in the United States, 2014 (Fall 2015), Table 1,http://go.usa.gov/cGUdW.

9. See Becky Pettit, Invisible Men: Mass Incarceration and theMyth of Black Progress (Russell Sage Foundation, June2012), www.russellsage.org/publications/invisible-men;and Derek Neal and Armin Rick, “The Prison Boom andSentencing Policy,” Journal of Legal Studies (forthcoming).

11. See James J. H“The Effects oLabor Market Labor Economihttp://dx.doi.o

nsistently risen since 1980, but there has been an rease in the number of state and local nimum-wage laws in recent years.

for the increase in incarceration among young n, most of it is not due to an increase in crime, ich has declined since the early 1990s.8 Rather,

it is largely due to the same policy changes, such as changes in sentencing rules, that have made nationwide incarceration rates about four times as high as they were in 1980.9 Because roughly 90 percent of all inmates are held in state prisons or local jails, most of the policy changes that have led to increased incarceration have been at the state

databases have identify people

Changes in thYoung MenAlso possibly colessness is that mentering adulthcognitive skills skills are generawhereas noncogskills” as diligenmismatches bet

10. See Harry J. H“Perceived Criand the RacialLaw and Econopp. 451–480,

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of fense.

ple are counted as jobless if they are neither in school nor working, whether or not they are looking for work.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond ctober of the year indicated.

80 1985 1990 1995 2000 2005 2010

RODUCTION TRENDS IN THE JOB

and local levels.increased for yoand educationathe effect has beducated and thhigher rates of iperiod.

The increased ianother factor imen. People whthan others to bbecause they haemployment anrecord, which eavoidance may

are of Young Men Who Were Jobless and Share Who Were Incarcerated

cent

Jobless

Incarcerated

ci

e

u

o

aO

9

Page 10: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

INT TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 4

habeskibe

AmreabeavthwiincrizlikDeplemecope

earnings of the next generation are likely to be affected by the families in which they grow up, adverse consequences for today’s families can have long-run economic impacts.17

12

13.

14.

15. For a discussion of the effect of schooling on earnings, seeDavid Card, “The Causal Effect of Education on Earnings,” in Orley C. Ashenfelter and David Card, eds., Handbookof Labor Economics, vol. 3, part A (Elsevier, 1999),pp. 1801–1863, http://tinyurl.com/zctdzrg; and PhilipOreopoulous and Uros Petronijevic, “Making CollegeWorth It: A Review of the Returns to Higher Education,”The Future of Children, vol. 23, no. 1 (Spring 2013), pp. 41–65, http://tinyurl.com/jj5koly. For a discussion of the effect of work experience on earnings, see Carl Sanders andChristopher Taber, “Life-Cycle Wage Growth and Hetero-geneous Human Capital,” Annual Review of Economics,vol. 4 (September 2012), pp. 399–425, http://dx.doi.org/10.1146/annurev-economics-080511-111011.

16. See Kerwin Kofi Charles and Ming Ching Luoh, “MaleIncarceration, the Marriage Market, and Female Outcomes,” Review of Economics and Statistics, vol. 92, no. 3 (August2010), pp. 614–627, http://tinyurl.com/puxlb2c; BruceWestern and Christopher Wildeman, “The Black Familyand Mass Incarceration,” Annals of the American Academy of Political and Social Science, vol. 621, no. 1 (January 2009),pp. 221–242, http://dx.doi.org/10.1177/0002716208324850; Isabel V. Sawhill, GenerationUnbound (Brookings Institution, 2014), http://tinyurl.com/pzdbjno; and Sara McLanahan, Laura Tach, and DanielSchneider, “The Causal Effects of Father Absence,” Annual Review of Sociology, vol. 39 (July 2013), pp. 399–427,http://tinyurl.com/ncszstr.

17. See Jonathan Gruber, “Is Making Divorce Easier Bad forChildren? The Long‐Run Implications of UnilateralDivorce,” Journal of Labor Economics, vol. 22, no. 4 (October 2004), pp. 799–833, http://dx.doi.org/10.1086/423155.

nt status resembles that of people who did not mplete high school more closely than that of ople who have completed high school.14

budget. Young men who are neither employed nor in school today are less likely to work when they are older. Among those who work in the future, estimates suggest, a lost year of schooling will lower annual earnings by roughly 10 percent, on average, and a lost year of work experience will lower earn-ings by roughly 3 percent.15 Those lower future earnings will yield a smaller economy and lower tax revenues than would have existed otherwise.

By adversely affecting future rates of marriage and family formation, joblessness and incarceration may have budgetary implications still farther in the future. Young men who are jobless or incarcerated today are less likely to marry, less likely to stay mar-ried, and less likely to have children who live in two-parent households than their counterparts who are employed or in school.16 Because the

. See David J. Deming, The Growing Importance of SocialSkills in the Labor Market, Working Paper 21473(National Bureau of Economic Research, August 2015),www.nber.org/papers/w21473.

See, for example, Christopher R. Taber, “The RisingCollege Premium in the Eighties: Return to College orReturn to Unobserved Ability?” Review of EconomicStudies, vol. 68, no. 3 (July 2001), pp. 665–691,http://restud.oxfordjournals.org/content/68/3/665.

See James J. Heckman, John Eric Humphries, andNicholas S. Mader, The GED, Working Paper 16064(National Bureau of Economic Research, June 2010),www.nber.org/papers/w16064.

RODUCTION

ve indeed been growing more common, it could either because the young men have fewer of the lls that employers have traditionally sought or cause the employers are seeking different skills.12

ong young men with less education, another son that joblessness and incarceration have come more common is that those men have, on erage, lower skills, in relation to all young men, an their counterparts in 1980 had—and those th lower skills are more likely to be jobless or arcerated.13 Also, young men who are catego-ed as high school graduates are increasingly ely to have passed the General Educational velopment (GED) test in lieu of having com-ted high school—and such people’s employ-

The Implications of Joblessness and IncarcerationThe increase in the joblessness and incarceration of young men between 1980 and 2014 has immediate implications for the federal budget. Jobless young men have no earnings on which to pay taxes, for one thing. Also, they and their families receive more federal benefits—such as benefits from Medicaid, unemployment insurance, and the Supplemental Nutrition Assistance Program—than employed young men and their families do, on average. And increased incarceration in federal prisons directly imposes significant costs on the federal government.

There are also future implications for the federal

Page 11: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

INT TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 5

ThThfor lesyojob 16cofroApto shexcFu

since 1980 had a far smaller impact on women than on men. (It is true that the share of young women who are jobless or incarcerated remains higher than the corresponding share of young men—but that is largely because many more young women than young men are spending their time caring for other people, particularly children, which drives up their rate of joblessness.)

This analysis focuses on young men instead of older ones because the consequences of joblessness and incarceration can be much greater for young men. A young man has, on average, many more years of prospective work ahead of him than an older man does.

Sources of DataFor this analysis, CBO used data from the Current Population Survey, which is sponsored jointly by the Census Bureau and the Bureau of Labor Statistics; data on the incarcerated popula-tion from the Bureau of Justice Statistics; and data on the military population from the Department of Defense. Immigrants, documented and undocumented alike, are included in the analysis. For more information about data and methods, see Appendix B.

RODUCTION

e Scope of This Analysise Congressional Budget Office analyzed trends young men because those trends are considerablys favorable than the corresponding trends for ung women. The share of young men who were less or incarcerated increased from 11 percent to percent between 1980 and 2014, whereas the rresponding share of young women declined m 31 percent to 22 percent (see Exhibit A-4 in pendix A). That decline was partly attributable an increase in school attendance; since 1988, theare of young women who are in school has eeded the corresponding share of young men. rthermore, the large increase in incarceration

Page 12: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

Joblessness and Incarceration Among Young Men, by Educational Attainment

ith various levels of and are looking for or work), but the

t is, men between the . Of those, 4.3 million eneral Educational e; and 8.4 million had

The five exhibits that follow show the rates of joblessness and incarceration among young men weducation. Jobless men comprise men who are unemployed (that is, those who are not employedwork) and men who are out of the labor force (those who are not employed and are not looking fcategory does not include men who are in school.

In 2014, the latest full year for which data are available, there were 37.8 million young men—thaages of 18 and 34—in the United States, including those who were in the military or incarceratedhad not finished high school; 12.7 million either had a high school diploma or had passed the GDevelopment (GED) test; 12.3 million had some college education, including an associate’s degreat least a bachelor’s degree.

Page 13: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB EDUCATIONAL ATTAINMENT TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 7

Exh

St ion, 2014

Sou partment of Defense.

Peo ple are counted as em

The

De

S

100

Employed or in School

68

78

90

Percentage ofTotal

11

34

33

22

In 2014, of the 38 million young men in the United States, 1 in 6 was jobless or incarcer-ated. However, the combined rate of jobless-ness and incarceration was much higher for young men with no more than a high school education than for those with at least some college education. Nearly one-third of young men without a high school education were jobless or incarcerated, as were more than one-fifth of young men with only a high school education. For young men with more educa-tion, the share was only about one-tenth.

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the De

ple are counted as jobless if they are neither in school nor working, whether or not they are looking for work. Peoployed or in school whether they do those activities full time or part time.

height of the bars represents the share of young men in each education category.

Bachelor’sgree or More

0 25 50 75Percent

8 92

LESSNESS AND INCARCERATION AMONG YOUNG MEN, BY

ibit 1.

atus of Young Men, by Level of Educat

ome College

High School

Less ThanHigh School

Jobless or Incarcerated

32

22

10

Page 14: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB UCATIONAL ATTAINMENT TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 8

Exh

Sh Education Who Were Jobless or Incarcerated

Per

Sou partment of Defense.

Peo

Sha marks correspond to Oct

0

5

10

15

20

25

30

35

1 2010

Some College

High School

Less Than

High School

In every year between 1980 and 2014, young men with less education were more likely than young men with more education to be jobless or incarcerated. During the recent recession and ensuing slow recovery, the gap widened between young men with a high school educa-tion or less and young men with some college education or more. Over the 35-year period, the rate of joblessness and incarceration for young men with only a high school education gradually came to resemble more closely the corresponding rate for young men without a high school education.

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the De

ple are counted as jobless if they are neither in school nor working, whether or not they are looking for work.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tickober of the year indicated.

980 1985 1990 1995 2000 2005

Bachelor’s

Degree or More

LESSNESS AND INCARCERATION AMONG YOUNG MEN, BY ED

ibit 2.

are of Young Men With Various Levels of

cent

Page 15: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 9

Exh

Sh nd Sh

Per

Sou

Peo

ShaOct

0

5

10

15

20

25

30

35

hool

0

5

10

15

20

25

30

35

1

Joblessness increased substantially among young men during the recent recession, and it remained relatively high during the subsequent slow recovery. The share of young men with-out a high school education who were jobless in 2014 was roughly on par with the share in 1980. For young men with at least a high school education, however, joblessness was higher in 2014 than it had been at any time between 1980 and the recession.

The share of young men with a high school education or less who were incarcerated increased substantially during the 1980s and 1990s. In 1980, about 3 percent of young men without a high school education were incarcer-

, about 8 percent were. Over the the rate of incarceration for ith a high school education rose

nt to 4 percent. For both groups, rate did not change significantly 0 and 2014. And incarceration ng men with at least some college d not change substantially during eriod.

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense.

ple are counted as jobless if they are neither in school nor working, whether or not they are looking for work.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond to ober of the year indicated.

1980 1985 1990 1995 2000 2005 2010

Some College Bachelor’s Degree or More

980 1985 1990 1995 2000 2005 2010

ated; in 1999same period,young men wfrom 1 percehowever, thebetween 200rates for youeducation dithe 35-year p

LESSNESS AND INCARCERATION AMONG YOUNG MEN, BY EDUCATIONAL ATTAINMENT

ibit 3.

are of Young Men With Various Levels of Education Who Were Jobless aare Who Were Incarcerated

cent

Jobless

Incarcerated

Less Than High School High Sc

Page 16: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 10

Exh

Sh d, Ou

Per

Sou

Peoune

ShaOct

0

5

10

15

20

0

5

10

15

20

10

5

10

15

20

From 1980 to 2014, unemployment rates for young men fluctuated but generally declined. By contrast, the share of young men who were either out of the labor force or incarcerated generally rose.

Among young men with no more than a high school education, the unemployment rate fluctuated between 1980 and 2014, winding up somewhat lower than it started. However, that decline was more than offset by a rise in the share of young men who were out of the labor force. Therefore, among young men with no more than a high school education, the increased joblessness by 2014 was not because they were increasingly unemployed;

ey were increasingly out of ltogether.

labor force nonparticipation oung men with a high school or those without one. By con-ration rate—which also rose n with no more than a high —rose more steeply among ot finished high school.

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense.

ple are counted as out of the labor force if they are not in school, not working, and not looking for work. People are counted as mployed if they are not in school, not working, and looking for work.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond to ober of the year indicated.

Incarcerated

980 1985 1990 1995 2000 2005 2010

1980 1985 1990 1995 2000 2005 2010

it was because ththe labor force a

The increase in was steeper for yeducation than ftrast, the incarcefor all young meschool educationthose who had n

LESSNESS AND INCARCERATION AMONG YOUNG MEN, BY EDUCATIONAL ATTAINMENT

ibit 4.

are of Young Men With Various Levels of Education Who Were Unemployet of the Labor Force, or Incarcerated

cent

Unemployed

Out of the Labor Force

Jobless

Less Than

High School

High

School

Some College

Bachelor’s Degree or More

Page 17: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 11

Exh

Sh mployed Ci

Per

Sou

Peo

ShaOct

2

4

6

8

10

2

4

6

8

10

Another way to analyze the increasing jobless-ness of young men is to examine the declining share of young men who do have jobs. Of young men with no more than a high school education, the share who were employed in civilian jobs fell between 1980 and 2014; much of that decline occurred during the recent reces-sion and slow recovery. The share who were employed in the military also fell—partly because the U.S. armed forces shrank in the 1990s, partly because the military was employ-ing more young women, and partly because the military stopped employing people with-out a high school education in the mid-1980s.

The percentage of people in civilian employ-t has consistently been lower among

ng men with some college education than ng young men with a high school educa-. The main reason is that young men with e college education are more likely to be in

ool.

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense.

ple are counted as employed whether they are employed full time or part time.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond to ober of the year indicated.

Military Employment

1980 1985 1990 1995 2000 2005 2010

0

0

0

0

0

0

1980 1985 1990 19950

4

8

12

menyouamotionsomsch

LESSNESS AND INCARCERATION AMONG YOUNG MEN, BY EDUCATIONAL ATTAINMENT

ibit 5.

are of Young Men With Various Levels of Education Who Were Evilians or in the Military

centCivilian Employment

Less Than High School

High School

Some College

Bachelor’s Degree or More

0

0

0

0

0

0

Page 18: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

Joblessness and Incarceration Among Young Men, by Racial and Ethnic Group

s races and ethnicities.

ilitary or incarcerated), n were of another race ially (from 80 percent t). The share of young -2 in Appendix A.)

gardless of any racial documented alike.

The next five exhibits show the rates of joblessness and incarceration among young men of variou

In 2014, of the 37.8 million young men in the country (a figure that includes those who were in the mabout 21.2 million were white, 8.2 million were Hispanic, 5.2 million were black, and 3.1 millioor ethnicity. Between 1980 and 2014, the share of young men who were white declined substantto 56 percent), and the share who were Hispanic more than tripled (from 7 percent to 22 percenmen who were black rose slightly, from 12 percent to 14 percent. (For more detail, see Exhibit A

In this analysis, people are classified as Hispanic if they have described themselves as Hispanic, rebackground that they have also reported. The analysis includes immigrants, documented and un

Page 19: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB NG MEN, BY RACIAL AND ETHNIC GROUP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 13

Exh

St nd Ethnic Group, 2014

Sou Defense.

Peo ted as em

Peo ve also rep

The

His

Employed or in School

87

84

Percentage ofTotal

56

22

4

8

In 2014, young black men were much likelier to be jobless or incarcerated than their counter-parts in other racial and ethnic groups. Nearly one-third of all young black men were jobless or incarcerated in that year, a share roughly twice as large as that of any other racial or ethnic group examined here. Young white men were somewhat less likely than young Hispanic men to be jobless or incarcerated.

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of

ple are counted as jobless if they are neither in school nor working, whether or not they are looking for work. People are counployed or in school whether they do those activities full time or part time.

ple are classified as Hispanic if they have described themselves as Hispanic, regardless of any racial background that they haorted.

height of the bars represents the share of young men in each racial or ethnic group.

Other

Black

0 25 50 75 100Percent

30

15

70

85

1

LESSNESS AND INCARCERATION AMONG YOU

ibit 6.

atus of Young Men, by Racial a

panic

White

Jobless orIncarcerated

13

16

Page 20: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB D ETHNIC GROUP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 14

Exh

Sh c Groups Who Were Jobless or Incarcerated

Per

Sou nt of Defense.

Peo

Peo y have also rep

Sha orrespond to Oct

0

5

10

15

20

25

30

35

Hispanic

Black

Throughout the 1980–2014 period, young black men were much likelier than young men of other racial or ethnic backgrounds to be jobless or incarcerated. Young Hispanic men were the next likeliest group, though the gap between them and young white men shrank substantially between the mid-1990s and 2014.

Each racial and ethnic group experienced an increase in joblessness and incarceration dur-ing the recent recession. And for each group, the rate of joblessness and incarceration remained higher in 2014 than it had been before the recession.

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Departme

ple are counted as jobless if they are neither in school nor working, whether or not they are looking for work.

ple are classified as Hispanic if they have described themselves as Hispanic, regardless of any racial background that theorted.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks cober of the year indicated.

1980 1985 1990 1995 2000 2005 2010

White

LESSNESS AND INCARCERATION AMONG YOUNG MEN, BY RACIAL AN

ibit 7.

are of Young Men in Various Racial and Ethni

cent

Page 21: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB , BY RACIAL AND ETHNIC GROUP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 15

Exh

Sh and Ethnic Groups Who Were Jobless and Sh

Per

Sou

Peo

Peorep

ShaOct

0

5

10

15

20

25

30

35

0

5

10

15

20

25

30

35

1

Hispanic

In 1980, both joblessness and incarceration were more prevalent among young black men than among young men in the other racial or ethnic groups examined here. Over the 35-year period—and particularly during the first two decades of that period—rates of incarceration increased for all young men, but most rapidly for young black men. And for all groups of young men, joblessness increased after 2007 and then fell again after 2009, though not to its prerecession level.

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense.

ple are counted as jobless if they are neither in school nor working, whether or not they are looking for work.

ple are classified as Hispanic if they have described themselves as Hispanic, regardless of any racial background that they have also orted.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond to ober of the year indicated.

1980 1985 1990 1995 2000 2005 2010

OtherBlack

980 1985 1990 1995 2000 2005 2010

Jobless

LESSNESS AND INCARCERATION AMONG YOUNG MEN

ibit 8.

are of Young Men in Various Racialare Who Were Incarcerated

cent

White

Incarcerated

Page 22: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 16

Exh

Sh nemployed, Out of the La

Per

SouPeounePeorepShaOct

0

5

10

15

20

0

5

10

15

20

10

5

10

15

20

The share of young men who were out of the labor force—that is, who were not working, not in school, not looking for a job, and not incarcerated—increased for all racial and ethnic groups examined here between 1980 and 2014. The share increased more for whites and blacks than for Hispanics, and by 2014, it was much higher for blacks—at about 14 percent—than for the other groups. Unemployment rates for young men as a whole were lower from the 1990s through 2007 than they had been in the 1980s, though they were higher for blacks than for members of the other groups.

Incarceration rates for young men of all racial and ethnic groups increased between 1980 and

ned somewhat through the overall incarceration e entire population that dless of age—remained after 2000, because the r older men rose as

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense. ple are counted as out of the labor force if they are not in school, not working, and not looking for work. People are counted as mployed if they are not in school, not working, and looking for work. ple are classified as Hispanic if they have described themselves as Hispanic, regardless of any racial background that they have also orted.ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond to ober of the year indicated.

Incarcerated

980 1985 1990 1995 2000 2005 2010

1980 1985 1990 1995 2000 2005 2010

2000 and then decli2014. Nevertheless, rate—the share of this incarcerated, regarroughly unchanged incarceration rate foprisoners aged.

LESSNESS AND INCARCERATION AMONG YOUNG MEN, BY RACIAL AND ETHNIC GROUP

ibit 9.

are of Young Men in Various Racial and Ethnic Groups Who Were Ubor Force, or Incarcerated

cent

Unemployed

Out of the Labor Force

Jobless

White

Hispanic

Black

Page 23: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB GROUP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 17

Exh

Sh s Who Were Employed Civilians, in the Mi

Per

SouPeoPeorepShaOct

ent

ent

White

Hispanic

0

20

40

60

80

100

0

20

40

60

80

100

0

20

40

60

80

100

Black

Throughout the period studied here, the shares of young white men and young Hispanic men who were in civilian employment were roughly equal, and both were higher than the equiva-lent share of young black men. Civilian employment fell for young men in all racial and ethnic groups during the recent recession.

Between 1980 and the mid-1990s, military employment fell for young men in all groups. The decline was particularly steep for young black men.

Young Hispanics had the lowest rate of school enrollment in every year between 1980 and 2014. Their rate increased substantially after

ion, but not enough to offset decline in employment.

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense.ple are counted as employed or in school whether they do those activities full time or part time.ple are classified as Hispanic if they have described themselves as Hispanic, regardless of any racial background that they have also orted.ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond to ober of the year indicated.

1980 1985 1990 1995 2000 2005 2010

In School

1980 1985 1990 19950

2

4

6

8

10

1999 2004 2009 20140

5

10

15

20

25

the recent recesstheir concurrent

LESSNESS AND INCARCERATION AMONG YOUNG MEN, BY RACIAL AND ETHNIC

ibit 10.

are of Young Men in Various Racial and Ethnic Grouplitary, or in School

cent

Military Employm

Civilian Employm

Page 24: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

Joblessness and Incarceration Among Young Men Without a High School Education, by Racial and Ethnic Group

n. Those young men as particularly affected

o were incarcerated— black, and 0.2 million h school education 2 percent to re who were black des immigrants,

The five exhibits that follow examine the activities of young men without a high school educatiohave historically experienced high rates of joblessness and incarceration, and their employment wby the recent recession.

In 2014, there were 4.5 million young men without a high school education—including those whin the United States. Of those, 1.6 million were white, 1.9 million were Hispanic, 0.8 million werewere of another race or ethnicity. Between 1980 and 2014, the share of young men without a higdeclined from 17 percent to 11 percent. The share of those men who were white declined from 637 percent, while the share who were Hispanic increased from 18 percent to 42 percent. The shadid not change appreciably. (For more detail, see Exhibit A-3 in Appendix A.) This analysis includocumented and undocumented alike.

Page 25: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB MEN WITHOUT A HIGH SCHOOL EDUCATION, BY RACIAL AND ETHNIC GROUP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 19

Exh

St h School Education, by Racial and Ethnic Group, 2014

S

P s e

P r

T nal 5

T

His

Employed or in School

71

77

Percentage ofTotal

37

40

In 2014, young black men without a high school education were much likelier to be jobless or incarcerated than their white counterparts—who were, in turn, likelier to be jobless or incarcerated than their Hispanic counterparts. In that year, 58 percent of young black men without a high school education were either jobless or incarcerated; the shares were 29 percent for whites and 23 percent for Hispanics.

ource: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense.

eople are counted as jobless if they are neither in school nor working, whether or not they are looking for work. People are counted amployed or in school whether they do those activities full time or part time.

eople are classified as Hispanic if they have described themselves as Hispanic, regardless of any racial background that they have alsoeported.

he height of the bars represents each racial or ethnic group’s share of all young men with less than a high school education. An additio percent of the total consists of young men in racial or ethnic groups not shown here.

he young men shown here do not have a high school diploma and have not passed the General Educational Development (GED) test.

Black

0 25 50 75 100Percent

58 1842

LESSNESS AND INCARCERATION AMONG YOUNG

ibit 11.

atus of Young Men Without a Hig

panic

White

Jobless or Incarcerated

29

23

Page 26: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB BY RACIAL AND ETHNIC GROUP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 20

Exh

Of Racial and Et

Per

Sou nse.

Peo

Peo also rep

Sha ond to Oct

The st.

1

White

0

10

20

30

40

50

60

Black

The share of young black men without a high school education who were jobless or incarcer-ated gradually increased between 1980 and 2014. Starting in 1993, that share was more than 50 percent in almost every year; it was 58 percent in 2014.

The share of young white men without a high school education who were jobless or incarcer-ated increased substantially during the recent recession. In 2014, though it remained high by historical standards—29 percent—it was still lower than the rate for comparably educated young black men.

The share of young Hispanic men without a high school education who were jobless or incarcerated also increased during the recession and fell afterward. Among the three groups examined here, Hispanics have been the least likely to be jobless or incarcerated in recent years.

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defe

ple are counted as jobless if they are neither in school nor working, whether or not they are looking for work.

ple are classified as Hispanic if they have described themselves as Hispanic, regardless of any racial background that they haveorted.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspober of the year indicated.

young men shown here do not have a high school diploma and have not passed the General Educational Development (GED) te

980 1985 1990 1995 2000 2005 2010

Hispanic

LESSNESS AND INCARCERATION AMONG YOUNG MEN WITHOUT A HIGH SCHOOL EDUCATION,

ibit 12.

Young Men Without a High School Education, Share in Various hnic Groups Who Were Jobless or Incarcerated

cent

Page 27: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB UP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 21

Exh

OfEt

Per

Sou

Peo

Peorep

ShaOct

The

19

0

10

20

30

40

50

60

70

0

10

20

30

40

50

60

70

During the recession that began in December 2007, the share of young men without a high school education who were jobless or incarcer-ated increased among all racial and ethnic groups examined here. Most of that increase was because of an increase in joblessness.

Before 2007, however, the increase in jobless-ness and incarceration among young black men without a high school education was largely because of an increase in their rate of incarceration. In 1980, less than 10 percent of young black men without a high school educa-tion were incarcerated; by 2007, the share had risen to 29 percent. The incarceration rate has fallen somewhat since then, but it remains

tandards. Furthermore, g men cycle in and out of estimates of point-in-time

rstate the extent to which ent at least some time ample, one study estimated ck men 30 to 34 years old high school education,

nt at least some time incar- Western and Becky Pettit, Social Inequality,” no. 3 [Summer 2010], yurl.com/jg8tb8a.)

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense.

ple are counted as jobless if they are neither in school nor working, whether or not they are looking for work.

ple are classified as Hispanic if they have described themselves as Hispanic, regardless of any racial background that they have also orted.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond to ober of the year indicated.

young men shown here do not have a high school diploma and have not passed the General Educational Development (GED) test.

1980 1985 1990 1995 2000 2005 2010

80 1985 1990 1995 2000 2005 2010

Black

high by historical sbecause many younjail and prison, suchincarceration undeyoung men have spincarcerated. For exthat in 2009, of blawho had less than a68 percent had specerated. (See Bruce“Incarceration and Daedalus, vol. 139,pp. 8–19, http://tin

LESSNESS AND INCARCERATION AMONG YOUNG MEN WITHOUT A HIGH SCHOOL EDUCATION, BY RACIAL AND ETHNIC GRO

ibit 13.

Young Men Without a High School Education, Share in Various Racial and hnic Groups Who Were Jobless and Share Who Were Incarcerated

centHispanicWhite

Jobless

Incarcerated

Page 28: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB D ETHNIC GROUP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 22

Exh

Of d Ethnic Groups Who W

Per

SouPeounePeorepShaOctThe

0

5

10

15

20

25

30

0

5

10

15

20

25

30

10

5

10

15

20

25

30

Between 1980 and 2014, the share of young men without a high school education who were out of the labor force was stable and low for Hispanics. For blacks, however, that share grew (by 6 percentage points), and for whites, it grew steeply (by 10 percentage points). The groups’ unemployment rates, by contrast, did not demonstrate a long-run pattern, though they fluctuated with recessions and recoveries. Incarceration rates increased for all of the groups between 1980 and 2014, but particularly for blacks.

Therefore, among young men without a high school education, the long-run increase in job-lessness and incarceration was largely because

eration and being out of ther. Those two factors h other, because people s often have a hard time . That is, some of the e nonparticipation among than a high school educa-ue to the increase in past

those young men.

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense.ple are counted as out of the labor force if they are not in school, not working, and not looking for work. People are counted as mployed if they are not in school, not working, and looking for work. ple are classified as Hispanic if they have described themselves as Hispanic, regardless of any racial background that they have also orted.ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond to ober of the year indicated. young men shown here do not have a high school diploma and have not passed the General Educational Development (GED) test.

Incarcerated

980 1985 1990 1995 2000 2005 2010

1980 1985 1990 1995 2000 2005 2010

of increases in incarcthe labor force altogemay be related to eacwith criminal recordfinding employmentincrease in labor forcyoung men with lesstion may have been dincarceration among

LESSNESS AND INCARCERATION AMONG YOUNG MEN WITHOUT A HIGH SCHOOL EDUCATION, BY RACIAL AN

ibit 14.

Young Men Without a High School Education, Share in Various Racial anere Unemployed, Out of the Labor Force, or Incarcerated

cent

Unemployed

Out of the Labor Force

Jobless

White

Hispanic

Black

Page 29: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

JOB ACIAL AND ETHNIC GROUP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 23

Exh

Of cial and Ethnic Groups Who W

Per

SouPeoPeorepShaOctThe

hite

panic

0

20

40

60

80

100

0

20

40

60

80

100

0

20

40

60

80

100

lack

Between 1980 and 2014, the share of young white men without a high school education who had civilian employment fell steadily, as did the share of similarly educated young black men—though the former remained likelier to be employed than the latter. Throughout that period, young Hispanic men without a high school education were the likeliest of the three groups to have civilian employment.

The share of young men without a high school education in the military, though never high, was almost zero by 1990, because the military stopped enlisting young men without a high school education.

white men and of young a high school education hey were in school tween 1980 and 2014, recent recession. The for young Hispanic men

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense.ple are counted as employed or in school whether they do those activities full time or part time.ple are classified as Hispanic if they have described themselves as Hispanic, regardless of any racial background that they have also orted.ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond to ober of the year indicated. young men shown here do not have a high school diploma and have not passed the General Educational Development (GED) test.

In School

0

1

2

3

4

5

1980 1985 1990 1995 2000 2005 2010

1980 1985 1990 1995

The shares of youngblack men without who reported that tincreased steadily beparticularly after thecorresponding shareremains small.

LESSNESS AND INCARCERATION AMONG YOUNG MEN WITHOUT A HIGH SCHOOL EDUCATION, BY R

ibit 15.

Young Men Without a High School Education, Share in Various Raere Employed Civilians, in the Military, or in School

cent

Military Employment

Civilian Employment

W

His

B

Page 30: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

Appendix A:

1980 and 2014 (see the joblessness and rt into two age groups, d incarceration of men

Supplemental Information

This appendix provides information about the demographic characteristics of young men between Exhibits A-1, A-2, and A-3). It also compares the joblessness and incarceration of young men with incarceration of young women (see Exhibit A-4). And it divides the young men studied in this repocomparing the joblessness and incarceration of men from 18 to 24 years old with the joblessness anfrom 25 to 34 years old (see Exhibit A-5).

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CBO

APP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 25

The share of all young men with less than a high school education fell from 17 percent to 11 percent between 1980 and 2014, mostly following the recent recession in 2007. The share of young men with only a high school education also fell between 1980 and 2014, from 36 percent to 34 percent, though that decline had been happening fairly steadily since the late 1980s. In contrast, the share of young men who had some college education grew during the 35-year period under consid-eration, from 28 percent to 33 percent, espe-cially after 2000; so did the share who had a bachelor’s degree or more, from 18 percent to 22 percent.

Exh

Ed

Sou

Shato O

ge of Total

Than High School

High School

ome College

or’s Degree or More

0

20

40

60

80

100

0

5

10

15

ENDIX A

ibit A-1.

ucational Attainment of Young Men

Percenta

Less

S

Bachel

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond ctober of the year indicated.

Millions of Young Men

1980 1985 1990 1995 2000 2005 2010

Less Than High School

High School

Some College

Bachelor’s Degree or More

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CBO

APP HE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 26

are of all young men who were white m about 80 percent in 1980 to about ent in 2014. Among the other racial nic groups, the largest change was

Hispanics, who grew from about nt of young men in 1980 to about ent in 2014. The share of young men

group called “other” also increased, pri-because of an increase in the share of men classified as Asian American.

f those changes happened because of anges in 2002 in the Current Popula-rvey’s questions about race and ethnic-e first change was that the questions ordered so that the question about eth-

Exh

Ra

Sou

Peorep

Shato O

0

20

40

60

80

100

0

10

20

30

ENDIX A TRENDS IN T

The shfell fro60 percand ethamong5 perce20 percin the marily young

Some otwo chtion Suity. Thwere re

ibit A-2.

ce and Ethnicity of Young Men

Percentage of Total

White

Hispanic

Black

Other

icity preceded the question about race, which ad the effect of reducing the number of spondents who identified their race as ther.” The second change was that respon-

ents were allowed to identify with more than ne race.

ecause of that second change, CBO had to ssign each respondent to a single group to void counting respondents twice. Respon-ents who identified their ethnicity as His-anic were classified as Hispanic, regardless of hich race or races they identified. Of respon-ents not already classified as Hispanic, those ho identified their race as African-American ere classified as black, regardless of whether ey identified other races as well. Of respon-

ents not already classified as Hispanic or lack, those who identified a race other than hite were classified as “other.” Finally, spondents not classified as Hispanic, black, r “other” were classified as white.

nhre“odo

Baadpwdwwthdbwreo

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense.

ple are classified as Hispanic if they have described themselves as Hispanic, regardless of any racial background that they have also orted.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond ctober of the year indicated.

Millions of Young Men

1980 1985 1990 1995 2000 2005 2010

White

Hispanic

Other

Black

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CBO

APP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 27

Between 1980 and 2014, among young men with less than a high school education, there were substantial changes in the shares accounted for by different racial and ethnic groups. The main change was a large increase in the share who were Hispanic—from under 20 percent in 1980 to over 40 percent in 2014. Most of the corresponding decrease occurred among young white men.

Exh

Ra With Less Than a High School Education

Sou

Peorep

Shato O

Percentage of Total

White

Hispanic

Black

Other

0

20

40

60

80

100

0

2

3

4

ENDIX A

ibit A-3.

ce and Ethnicity of Young Men

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the Department of Defense.

ple are classified as Hispanic if they have described themselves as Hispanic, regardless of any racial background that they have also orted.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond ctober of the year indicated.

Millions of Young Men

1980 1985 1990 1995 2000 2005 2010

White

Hispanic

Other

1 Black

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CBO

APP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 28

The share of young women who are jobless or incarcerated exceeds the corresponding share of young men, mostly because many more young women than young men spend their time caring for other people, particularly chil-dren. However, the gap narrowed substantially between 1980 and 2014, as the share of young women who were employed or in school rose while the corresponding share of young men fell. Incarceration played a role in those trends, because the percentage of young men who were in prison or jail rose much more quickly than the corresponding percentage of young women did. Furthermore, the recent recession was characterized by higher rates of job loss

Exh

Sh erated, by Sex

Per

Sou

Shato O

omen

Men

0

5

10

15

20

25

30

35

ENDIX A

ibit A-4.

are of Young People Who Were Jobless or Incarc

cent

W

among men than among women.

Department of Defense.

. Tick marks correspond

2010

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and the

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its troughctober of the year indicated.

1980 1985 1990 1995 2000 2005

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CBO

APP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 29

In this report, young men are defined as those between the ages of 18 and 34. Within that range, in nearly every year between 1980 and 2014, a slightly larger share of younger men than of older men were jobless or incarcerated. The two age groups followed similar trends, however.

Exh

Sh Age Groups Who Were Jobless or Incarcerated

Per

Sou

Shato O

1

25 to 34 Years Old

18 to 24 Years Old

0

5

10

15

20

25

ENDIX A

ibit A-5.

are of Young Men in Two

cent

e Department of Defense.

h. Tick marks correspond

2010

rce: Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, and th

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trougctober of the year indicated.

980 1985 1990 1995 2000 2005

Page 36: Trends in the Joblessness and Incarceration of Young MenYoung Men MAY 2016. CBO Notes Unless otherwise indicated, all years referred to in this report are calendar years, not fiscal

CBO

Many widely ent ston the Curre urveyjointly spons sus BBureau of La hat snoninstitutio popuhousing unit bersforces living n homilitary base ld nobase. Howev ver othe armed fo ho arTherefore, fo he CBudget Offic the Cthe incarcera rom Justice Statis ith dtary populati partm

Immigrants, ed anmented, are analydata that CB ncludple. To the e less prates of empl er pmates of emp ted in

ustry or occupation, because those people accounted for separately in the military data cussed below.

ople who are in school are those who report ng in school—including those who also rk part time, but excluding those who o work full time. CBO did not distinguish ween people who were enrolled in school l time or part time.

employed people are those who are not rking but are looking for work. In this alysis, people who report being in school not considered unemployed, even if they are king for work.

ople who are out of the labor force are those o are not working, not looking for work, and t in school.

eport calls people “jobless” if they belong er the third group or the fourth—that is, are either unemployed or out of the labor

1. See Becky P Mass

Myth of Bla Sage F2012), www blicati

cited employmnt Population Sored by the Cenbor Statistics. Tnalized civilian s, as well as memeither in a civilia or in a househoer, it does not corces or people wr this analysis, te supplementedted population ftics (BJS) and won from the De

both documentincluded in this O used do not ixtent that homeoyment than othloyment presen

ettit, Invisible Men:ck Progress (Russell .russellsage.org/pu

who report “armed forces” as their primary force.oundation, June ons/invisible-men.

using unit on a t on a military ther members of e incarcerated.1 ongressional PS with data on

the Bureau of ata on the mili-ent of Defense.

d undocu-sis. However, the e homeless peo-eople have lower eople do, the esti- this report may

ulation that CBO used are from the CPS. That survey omits people who are living in “institutional settings,” such as prisons, jails, hospitals, mental institutions, and military barracks. Though a basic version of the CPS is conducted every month, there are also supplemental surveys on various top-ics that differ from month to month and year to year. One of them, conducted each October, is the only one that asks all adult respondents about their labor force status and whether they are in school. CBO used that supplement.

For this analysis, CBO categorized noninstitution-alized civilians into four groups:

B Employed people are those who work full time, regardless of whether they are in school, and those who work part time and are not in school. However, the group does not include respondents

woalsbetful

B Unwoanareloo

B Pewhno

This rto eithif they

Incarceration and the

Appendix B: Data and Methods

atistics are based (CPS), which is ureau and the

urvey covers the lation living in of the armed

be overstated—but only slightly, because only a small share of the population is homeless.

Noninstitutionalized CiviliansThe data on the noninstitutionalized civilian pop-

indaredis

B Pebei

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CBO

APP TRENDS IN THE JOBLESSNESS AND INCARCERATION OF YOUNG MEN 31

InCBagmacatinfanpr

FostaStaHotioin infanwiFeterInad20prby19co

el

ls, al d ti-

th-ta d or

el

er-es e,

Comparisons With the CPSThe employment rate from the Bureau of Labor Statistics, which is based on the CPS, generally applies to the civilian noninstitutionalized popu-lation; that is, it does not account for most people in the military or for incarcerated people. The employment rate from the Bureau of Labor Statis-tics was higher for young men, throughout the 35-year period examined in this report, than the equivalent rate resulting from this analysis, which accounts for those two groups (see the figure on page 32).

The gap between the two rates widened over the 1980–2014 period. That happened because the mix of young men not covered by the CPS shifted. In 1980, they were split about equally between those who were in the military (and therefore employed) and those who were incarcer-ated, so the two groups nearly canceled each other out. But the prison population grew and the share of young men in the military shrank, increasing the number of jobless people who were not covered by the CPS—and thus the difference between CPS-based estimates of employment and those in this report.

2.

y year. Therefore, CBO supplemented the NPS th two BJS surveys: the Survey of Inmates at deral Correctional Facilities (which was adminis-ed in 1991, 1997, and 2004) and the Survey of mates at State Correctional Facilities (which was ministered in 1979, 1986, 1991, 1997, and 04). CBO used those surveys to apportion the e-1999 NPS prisoner counts into groups defined age, race and ethnicity, sex, and education. For 99 and later years, because the NPS prisoner unts are already broken down by age, race and

2002. Once again, CBO extrapolated estimates fyears that were not covered by the survey.

MilitaryThe CPS does not survey active military personnliving in military barracks or outside the UnitedStates. CBO therefore obtained data about thosegroups from the Department of Defense. Thosedata consisted of the number of active military psonnel in the Army, Navy, Air Force, and Marinfor each year from 1980 through 2014, by sex, ageducational attainment, and race and ethnicity. That approach is similar to the one described in Becky

Pettit, Invisible Men: Mass Incarceration and the Myth of Black Progress (Russell Sage Foundation, June 2012), www.russellsage.org/publications/invisible-men.

ENDIX B

carcerated MenO used several sources of data from the BJS, an

ency within the Department of Justice, to esti-te the number of incarcerated men by age, edu-ional attainment, and race and ethnicity.2 The ormation available varied depending on whether inmate was held in a federal prison, a state ison, or a local jail.

r estimates of the total number of federal and te inmates, CBO relied on the National Prisoner tistics (NPS), which are collected by the BJS. wever, those statistics do not include informa-n about inmates’ sex, age, or race and ethnicity years before 1999, and they do not include ormation about inmates’ level of education in

ethnicity, and sex, the surveys are used to appor-tion those data into groups further defined by levof education. For the years that were not coveredby the surveys, CBO extrapolated estimates fromthe years that were.

For estimates of the total number of inmates in jaiCBO used data from the Annual Survey of Jails.That survey collects data about local jails, regionjails, and privately contracted jails within selectejurisdictions. CBO excluded parolees from its esmates, because they are covered by the CPS. To apportion inmates in jails by sex, age, race and enicity, and educational attainment, CBO used dafrom the Survey of Inmates in Local Jails, whichwas administered in 1978, 1983, 1989, 1996, an

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CBO

APP JOBLESSNESS AND INCARCERATION OF YOUNG MEN 32

Sh

Per

Soan

Shto

0

20

40

60

80

100

rces: Bureau of Labor Statistics; Congressional Budget Office, using data from the Census Bureau, the Bureau of Justice Statistics, the Department of Defense.

ded vertical bars indicate periods of recession, which extend from the peak of a business cycle to its trough. Tick marks correspond ctober of the year indicated.

1980 1985 1990 1995 2000 2005 2010

ENDIX B TRENDS IN THE

are of Young Men Who Were Employed, According to Two Measures

cent

Measure Based on the

Civilian Noninstitutionalized

Population

Measure Based on the

Civilian, Military, and

Incarcerated Populations

ud

aO

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CBO

About This Document

t Office’s

ne (both by orf (formerly Meyerson,

f the ity for

ntino and v/

This report was prepared in response to Congressional interest. In keeping with the Congressional Budgemandate to provide objective, impartial analysis, the report makes no recommendations.

William Carrington and Molly Dahl wrote the report with assistance from Chung Kim and Michael Leviformerly of CBO) and from Lucille Msall and with guidance from Joseph Kile. Comments were providedDavid Austin, Linda Bilheimer, Sheila Campbell, Manasi Deshpande, Wendy Edelberg, Douglas Elmendof CBO), Justin Falk, Kathleen FitzGerald, Janet Holtzblatt, Justin Humphrey, Nadia Karamcheva, NoahJoshua Montes, Jonathan Schwabish (formerly of CBO), Chad Shirley, and Emily Stern.

Harry Holzer of Georgetown University, Casey Mulligan of the University of Chicago, and Becky Pettit oUniversity of Texas at Austin also commented. The assistance of external reviewers implies no responsibilthe final product, which rests solely with CBO.

Jeffrey Kling and Robert Sunshine reviewed the report, Benjamin Plotinsky edited it, and Maureen CostaJeanine Rees prepared it for publication. An electronic version is available on CBO’s website (www.cbo.gopublication/51495).

Keith Hall Director

May 2016