Statistics showing blacks to be overrepresented in the criminal justice system correlate with racial disparities in employment. Labor market studies reveal that relative to whites, blacks receive lower wages, are disproportionately represented in menial occupations, and have higher turnover and unemployment rates. Assuming there are two income-producing prospects facing potential criminals -- work and crime -- a simple economic model shows that the optimal allocation of time to crime depends on the relative attractiveness of crime and work. Given racial imbalances in the labor market, the relative return to crime for blacks is greater than for whites. Blacks in prison are likely to serve longer sentences because they have characteristics such as being young and urban that statisticians have linked to crime. Longer prison terms deny blacks work experience, making them less valuable to employers. An analysis of all prisoners released on parole in the United States in 1972 shows that while longer time served tended to lower recidivism for white parolees, it was associated with higher parole failure in blacks. Many attempts to solve the crime problem through employment strategies have had mixed results, probably due to the lack of employment programs that are accessible to prisoners and teach usable skills. Wage subsidies deal with the fact that nobody really wants to hire a criminal and, coupled with pressure from community organizations, might promote employment for ex-offenders. The paper includes 10 references.