Tuesday, February 21, 2012

                    Why Can't Convicted Felons Get Jobs?

     A news article considered the problem of felons getting
jobs.  One suggested solution was prohibiting employers from
asking if an applicant had been convicted of a felony.  This
solution doesn't pass the smell test.  Any "solution" that involves
increased ignorance isn't likely to be a reasonable solution for
any problem.

     Besides, how do you enforce the ignorance?  Will
employers also be banned from using the Internet and other
resources to find an applicant's record?  Must employers sign an
affidavit that they didn't investigate the job applicant?

     Consider why employers prefer to hire from some groups
more than from others.  Many employers choose college
graduates even though their degrees have nothing to do with the
job.

     Is this irrational?  No, it isn't.  Employers seek to hire
productive employees.  On average a person who puts forth the
effort to earn a degree will be a more dedicated, capable and
better worker than those who haven't.

     This does not mean that some non graduates won't be just
as productive or better than some, or even all, of the graduates.
The odds favor the graduates.

     When panning for gold, miners seek the richest vain.
Ore that yields an ounce of gold per ton is preferable to ore that
yields only half an ounce.  Gold from the two ores are equally
valuable.  One is easier to obtain.

     The same is often true of employees.  Some sources, such
as college graduates, are more likely to yield productive
employees than are others.

     When comparing a group of felons to a group of non
felons, the latter group is more likely to yield productive,
responsible employees.  Employers often choose to mine the
more promising ore.

     The employer's biggest concern isn't the productivity of
individual employees.  The employer's concern is the cost per
unit of production.  If the felon is to be paid the same as the non
felon, expect the employer to hire the non felon.  If the
employer has the option of offering a lower wage to the felon,
this could tip the scales toward hiring the felon.

     We have very little wage flexibility in our society.
Minimum wage laws, prevailing wage laws, living wage laws,
union contracts, etc. tie the employer's hands in setting wages.
Laws, practices and customs that limit wage flexibility
discriminate against all marginal workers.  Young workers,
poorly educated workers, and felons are only a few examples of
those who bear the brunt of inflexible wages.

     Prohibiting employers from asking if a job applicant is
young, poorly educated, a trouble maker, etc. isn't the answer.
The answer is to make it legally and socially acceptable for
employers to offer a wage he believes a worker is worth.

     This will encourage some, probably not all, employers to
seek to hit gold by mining the veins of marginal workers.  The
more employers are pressured and forced to pay the same wage
to all applicants, the more employers will favor employees from
the most promising veins.  Only when those veins are mined out
will employers turn to the veins of marginal employees.

     Many of those marginal workers, if given the chance, will
prove themselves and work their way up to more productive,
higher paying jobs.  The inelasticity of wages motivates
employers to deny the marginal workers the chance to prove
themselves.

     The average felon is less valuable as an employee than
the average non felon.  Trying to force employers to ignore this
reality isn't the answer.  The answer is to make the felons more
valuable to the employer by allowing the employer to pay lower
starting wages.

     One of the major reasons for chronic unemployment is
that employers try to fit the employee to the wage, rather than
fitting the wage to the employee.  The workers who don't fit the
wage don't get hired.  They must settle for no wages.

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Copyright 2012
Albert D. McCallum
18440 29-1/2 Mile Road
Springport, Michigan 49284
For week of 2/13/12

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