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The Effect of Private Sector Work Opportunities in Prison on Labor Market Outcomes of the Formerly Incarcerated

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  • Robynn Cox

    (USC School of Social Work)

Abstract

This paper examines the effects of a private-sector prison work program called the Prison Industry Enhancement Certification Program (PIECP) on formal unemployment duration, duration of formal employment, and earnings of men and women released from various state prisons between 1996 and 2001. It also investigates the labor market dynamics of formerly incarcerated men and women. The program is found to increase reported earnings and formal employment on the extensive margin, with a stronger impact on the formal employment of women. There is little evidence that it increases formal employment along the intensive margin (i.e., duration of formal employment). Contrary to segmented labor market theories, superior employment (i.e., higher-paying jobs) does not lead to increased job stability. Roughly 92 % of individuals who obtained formal employment in the sample experienced job loss; however, reincarceration rates are too low to explain this fact. An evaluation of labor market dynamics reveals that traditional human capital variables, criminogenic factors, and a few demographic characteristics determine job loss. In addition, black women, single women, and women with more extensive criminal histories face greater barriers in the labor market than their male counterparts.

Suggested Citation

  • Robynn Cox, 2016. "The Effect of Private Sector Work Opportunities in Prison on Labor Market Outcomes of the Formerly Incarcerated," Journal of Labor Research, Springer, vol. 37(4), pages 412-440, December.
    • Handle: RePEc:spr:jlabre:v:37:y:2016:i:4:d:10.1007_s12122-016-9229-0
    DOI: 10.1007/s12122-016-9229-0
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    1. Raphael, Steven & Winter-Ember, Rudolf, 2001. "Identifying the Effect of Unemployment on Crime," Journal of Law and Economics, University of Chicago Press, vol. 44(1), pages 259-283, April.
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    Cited by:

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    2. Zanella, Giulio, 2020. "Prison Work and Convict Rehabilitation," IZA Discussion Papers 13446, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Prison labor; Incarceration; Prisoner reentry; Unemployment duration; Employment duration; Formerly incarcerated; Earnings; Prison industry enhancement certification program; Job training programs;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • K49 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Other

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