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The Deterrent Effects of Prison: Evidence from a Natural Experiment

  • Drago, Francesco


    (University of Naples Federico II)

  • Galbiati, Roberto



  • Vertova, Pietro


    (University of Bergamo)

In this paper we test for the theory of deterrence. We exploit the natural experiment provided by the Collective Clemency Bill passed by the Italian Parliament in July 2006. As a consequence of the provisions of the bill, expected punishment to former inmates recommitting a crime can be considered as good as randomly assigned. Based on a unique data set on post-release behaviour of former inmates, we find that an additional month in expected sentence reduces the propensity to recommit a crime by 1.24 percent: this corroborates the general deterrence hypothesis. However, this effect depends on the time previously served in prison: the behavioural response to an additional month of expected sentence decreases with the length of the prison spell. This second result can be hardly reconciled with the specific deterrence hypothesis according to which a stronger past experience of punishment should increase the sensitivity to future expected sanctions.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2912.

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Length: 31 pages
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:iza:izadps:dp2912
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  1. Steven D. Levitt, 1995. "Why Do Increased Arrest Rates Appear to Reduce Crime: Deterrence, Incapacitation, or Measurement Error?," NBER Working Papers 5268, National Bureau of Economic Research, Inc.
  2. Kessler, Daniel P & Levitt, Steven D, 1999. "Using Sentence Enhancements to Distinguish between Deterrence and Incapacitation," Journal of Law and Economics, University of Chicago Press, vol. 42(1), pages 343-63, April.
  3. Patrick Bayer & Randi Hjalmarsson & David Pozen, 2007. "Building Criminal Capital behind Bars: Peer Effects in Juvenile Corrections," NBER Working Papers 12932, National Bureau of Economic Research, Inc.
  4. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
  5. Emily G. Owens, 2009. "More Time, Less Crime? Estimating the Incapacitative Effect of Sentence Enhancements," Journal of Law and Economics, University of Chicago Press, vol. 52(3), pages 551-579, 08.
  6. repec:oup:qjecon:v:111:y:1996:i:2:p:319-51 is not listed on IDEAS
  7. David S. Lee & Justin McCrary, 2005. "Crime, Punishment, and Myopia," NBER Working Papers 11491, National Bureau of Economic Research, Inc.
  8. Jeffrey R. Kling, 2006. "Incarceration Length, Employment, and Earnings," NBER Working Papers 12003, National Bureau of Economic Research, Inc.
  9. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June.
  10. Levitt, Steven D. & Miles, Thomas J., 2007. "Empirical Study of Criminal Punishment," Handbook of Law and Economics, Elsevier.
  11. Edward C. Norton & Hua Wang & Chunrong Ai, 2004. "Computing interaction effects and standard errors in logit and probit models," Stata Journal, StataCorp LP, vol. 4(2), pages 154-167, June.
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