The Economic Impact of Prison labor
The purposes of this study are to analyze economic effect of prison labor on free market economy and to suggest ways for more effective prison labor industry. The impact of prison labor on non-prison labor has been debated over the years. Proponents have touted the social benefits of decreased net cost of prisons, improved behavior in prison, the potential for low recidivism, and rehabilitation through development of work and social skills. Opponents of prison labor from the beginning have pointed out the private costs of lost jobs and lost sales of industries outside the prison. Although it is very difficult to measure and compare quantitatively benefits and costs of prison labor, there is inverse relationship between prison labor and recidivism rates. According to Federal Bureau of Justice, inmates involved in prison labor has better chance to be employed and to receive higher wage. In addition, the revenue from prison work can pay for the costs of housing them in prison and prison labor leads to increased production of goods and services that can help in developing regional economy. In spite of the advantages of prison labor, it is argued that prisoners work is exploitative and it will displace civilian business and labor. These concerns put in place as the size and scope of prison labor expands and motivate legislative efforts in restricting prison labor. To improve quality of prison labor, the Bureau of Prisons needs to allow more private companies to employ prisoners at reasonable wage and to cultivate useful skills. Moreover, the operation body and methods of correctional work program should be reformed and specialized. It is recommended to consider establishment of special organization that concentrates in operating prison labor industry. Finally, it is suggested to benefits of prison labor should be measured and publicized to ensure quality of correctional work program.