economics Practical Magic

Ending cash bail works like a direct economic boost, lowering a county's unemployment rate almost immediately.

March 24, 2026

Original Paper

Cash Bail or Cash Back? The Impact of Cash Bail Reform on Unemployment Rates

Margaret Morrison, Daniel Kent Neil Johnson, Liam Mullen

SSRN · 6332678

The Takeaway

While the bail debate usually focuses on crime, this study found that bail reform pays a 'financial bonus' to jurisdictions. By allowing defendants to return to their jobs instead of sitting in jail, counties see a measurable drop in unemployment of 0.1 to 0.2 percent per month.

From the abstract

Over the last decade, more than twenty states (and also some smaller jurisdic ons) have changed their pretrial policies to reduce or eliminate the use of monetary bail, to instead favor risk-based assessments when deciding whether a defendant should be jailed before trial. This policy change could have an impact on local unemployment rates, as defendants can return to work. On the other hand, incarcerated individuals are removed from the labor force (and therefore unemployment rates) so we might