2021/04/30 by Anita Mukherjee · 1 citation
Economics, Econometrics and Finance · Social Sciences · Psychology · #Law, Economics, and Judicial Systems #Criminal Justice and Corrections Analysis #Taxation and Compliance Studies #Recidivism #Prison #Criminology #Business #Psychology
paper · pdf · doi:10.1257/pol.20170474
openalex publication_date 2021/04/30 · openalex created_date 2025/10/10 · openalex updated_date 2026/05/26
This paper examines the impact of private prison contracting by exploiting staggered prison capacity shocks in Mississippi. Motivated by a model based on the typical private prison contract that pays a per diem for each occupied bed, the empirical analysis shows that private prison inmates serve 90 additional days. This is alternatively estimated as 4.8 percent of the average sentence. The delayed release erodes half of the cost savings offered by private contracting and is linked to the greater likelihood of conduct violations in private prisons. The additional days served do not lead to apparent changes in inmate recidivism. (JEL H76, K42)