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TOPIC:
PRISON WORK AND RECIDIVISM
ABSTRACT
Does employing inmates in prison jobs reduce reincarceration? I investigate this question applying quasi-experimental and structural methods to administrative data on the universe of convicts released from Italian prisons between 2009 and 2012. I find that a standard deviation increase in average annual hours spent in a paid, unskilled prison job (200 hours per year) reduces the reincarceration rate by about 10 percentage points one year of release. This effect persists after three years of release, implying a rate of return on government funds allocated to prison work programs in the order of 60%. Structural estimation of a model formalizing the institutional context under investigation and the convict's problem upon release reproduces the quasi-experimental finding and indicates that the "training effect" of prison work (slower depreciation of an inmate's earnings potential during imprisonment) accounts for most of the drop in the reincarceration rate.