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Suppose the government decides to offer a wage subsidy to people who are re-entering society after being in prison (i.e., for every hour a formerly

Suppose the government decides to offer a wage subsidy to people who are re-entering society after being in prison (i.e., for every hour a formerly incarcerated person works at a formal job, the government pays them an additional amount). Neither demand nor supply is totally elastic or totally inelastic. All else equal, theory tells there will be fewer offenses in equilibrium than before the subsidy

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