Community-based sentencing and labour market outcomes: evidence from New Zealand’s 2007 sentencing reform

New Zealand’s October 2007 sentencing reform expanded alternatives to short-term imprisonment. Using linked court and tax records, we estimate how the shift towards home detention, community detention, and intensive supervision affected offenders’ labour market outcomes. Our triple-differences design compares affected cohorts sentenced just before and after the reform and nets out contemporaneous labour-market changes using offenders with monetary sentences. Earnings and employment rise meaningfully in the first six months after sentencing. Employment effects fade to near zero by around eight months, but earnings remain higher and are still visible up to ten years after sentencing, averaging about 2.5 per cent of counterfactual earnings per month.

Authors

Institutions

Publication Details

Journal
New Zealand Economic Papers
Published
2026-10-16
DOI
https://doi.org/10.1080/00779954.2026.2737634
Primary Topic
Criminal Justice and Corrections Analysis
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Community-based sentencing and labour market outcomes: evidence from New Zealand’s 2007 sentencing reform

Livvy Mitchell, Peer Ebbesen Skov
New Zealand Economic Papers
Criminal Justice and Corrections Analysis
article

Community-based sentencing and labour market outcomes: evidence from New Zealand’s 2007 sentencing reform

Livvy Mitchell, Peer Ebbesen Skov
article en

Abstract

New Zealand’s October 2007 sentencing reform expanded alternatives to short-term imprisonment. Using linked court and tax records, we estimate how the shift towards home detention, community detention, and intensive supervision affected offenders’ labour market outcomes. Our triple-differences design compares affected cohorts sentenced just before and after the reform and nets out contemporaneous labour-market changes using offenders with monetary sentences. Earnings and employment rise meaningfully in the first six months after sentencing. Employment effects fade to near zero by around eight months, but earnings remain higher and are still visible up to ten years after sentencing, averaging about 2.5 per cent of counterfactual earnings per month.

New Zealand Economic Papers
Auckland University of Technology (NZ), Rockwool Foundation (DK), Motu Economic and Public Policy Research (NZ)
Peace, justice, and strong institutions, Decent work and economic growth
Openalex Percentile: Top 5%
Criminal Justice and Corrections Analysis
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.