Ex convicts are an untapped job market

The economic principle I examined was how people respond to incentives in predictable ways. There are many examples of how this economic principle can be applied to the real world. While studying ex convicts in the job market I found many example of this principle. First, Business owners both small and large often overlook the ex convicts because they believe they would not be loyal employees. However, often times these are the employees who would show the most loyalty because they know they are most likely not going to get another chance. Second, Businesses have a golden opportunity to hire employees that are proven to not only save money but are just as reliable as other employees which reduces turnover rate. As Mike Green of the Huffington Post put it  “Ex-felons have far fewer options than conventional employees. Having a high turnover rate within a business can be detrimental to its growth. If employers are constantly having to worry about hiring people who won’t leave it can take take their attention away from other important matters. Third, there are bottom line incentives that include substantial tax credits for businesses. Some states even provide partial wage reimbursement, additional tax credits, and other training funds for employers who hire ex-felons. Overall, you can see that businesses would be foolish to not hire an ex convict if it can hire loyal employees, get tax cuts, reduce the turnover rate, and reduce overall unemployment.