Impacts of Private Prison Contracting on Inmate Time Served and Recidivism

64 Pages Posted: 13 Nov 2014 Last revised: 11 Jun 2019

See all articles by Anita Mukherjee

Anita Mukherjee

University of Wisconsin - Madison - School of Business

Date Written: June 6, 2019

Abstract

This paper examines the impact of private prison contracting by exploiting staggered prison capacity shocks in Mississippi. The analysis shows that private prison inmates serve 90 additional days, 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. The analysis is motivated by a model based on the typical private prison contract that pays a diem for each occupied bed.

Keywords: Privatization; Contracting; Private Prisons; Incarceration; Recidivism; Parole; Infractions; Incomplete Contracting

JEL Classification: L33; H11; H72; D02

Suggested Citation

Mukherjee, Anita, Impacts of Private Prison Contracting on Inmate Time Served and Recidivism (June 6, 2019). Available at SSRN: https://ssrn.com/abstract=2523238 or http://dx.doi.org/10.2139/ssrn.2523238

Anita Mukherjee (Contact Author)

University of Wisconsin - Madison - School of Business ( email )

975 University Avenue
Madison, WI 53706
United States

HOME PAGE: http://www.anitamukherjee.com

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