Empirical studies have demonstrated the positive relationship between participation in crime and poor employment opportunities. Consequently, employment specialists have tried to address this problem through vocational training, job search assistance, supported work, and cash subsidies. Most programs have failed, largely due to a reluctance to recognize racial differences in employment experiences and criminal activity. Previous studies have revealed that the responsiveness of employment to cash subsidies and the sensitivity of recidivism to employment experience differ dramatically between black and white ex-offenders. Blacks have a higher recidivism rate than whites and work fewer hours in the year after release. The data also show that black ex-offenders are far more responsive to labor market stimuli. Thus, employment assistance might be expected to help black ex-offenders significantly more than whites. In comparison to other employment strategies for the ex-offender, wage subsidies are cheap and politically feasible. They would also help many ex-offenders without compounding their postprison adjustment problems with the stigma of being labeled a criminal. Federal legislation, including the Economic Recovery Tax Act of 1981 and the Targeted Jobs Tax Credit, has already been enacted that can effectively be applied to many ex-offenders. The paper contains 23 references.