Finance and Economics Discussion Series (FEDS)
November 2026
Costly Misdemeanours: Labour Market Effects of Low-Level Drink-Driving Violations
Kabir Dasgupta, Marco Francesconi, Jonathan James Linda Kirkpatrick, and Alexander Plum
Abstract:
This paper estimates the causal effect of a drink-driving conviction on labour market outcomes. Using linked administrative data and variation in the timing of first convictions in a staggered difference-in-differences design, we compare individuals before and after conviction to those convicted later. We find employment falls by 6–7 percentage points and monthly earnings decline by around 2 percent. The effects are driven primarily by reduced job entry as opposed to job loss. Employment effects are largest in industries where employers are more likely to screen applicants for criminal convictions.
Keywords: Drink-driving convictions, Criminal records and employment, Labour market effects of crime, Administrative data and causal inference
DOI: https://doi.org/10.17016/FEDS.2026.073
PDF: Full Paper
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