Investment in Human Capital during Incarceration and Employment Prospects of Prisoners
AbstractThe costs of incarceration and recidivism to the community are substantial. These costs not only include the direct costs of imprisonment but also the opportunity costs arising from depletion of human capital and loss of output. Policy makers have emphasised the importance of rehabilitating prisoners as a way of reducing recidivism. Consequently, the management of prisoners has changed, with more prisoners being encouraged to undertake some form of education, training and/or work during their incarceration in conjunction with any behavioural management programmes. This paper examines, using the 2003 Survey of Prisoners in Western Australia, the decision of prisoners to invest in education/training during their prison term and the potential labour market outcomes of this investment. The results suggest that prisoners use education/training to improve their skills in preparation for release from prison. From this perspective it can be argued that these prisoners see education/training as an investment in human capital rather than consumption. In addition, the decision to participate in either education or training is non-random and varies across the time remaining on the prison sentence, thus suggesting prisoners view education and training as different activities. However, the results show the expected benefit prisoners place on education and training is similar.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4582.
Length: 37 pages
Date of creation: Nov 2009
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Find related papers by JEL classification:
- I20 - Health, Education, and Welfare - - Education - - - General
- J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-11 (All new papers)
- NEP-HRM-2009-12-11 (Human Capital & Human Resource Management)
- NEP-LAB-2009-12-11 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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