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Fall 2001
ISSN 0890-913X
Volume 17, Number 1

Private Employment of Prison Labor

Charles C. Cox, Lexecon Inc.
Roger E. Meiners, University of Texas Arlington
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/jpe/index.php?action=ajax&rs=GDMgetPage&rsargs[]=999602.pdf&rsargs[]=0
PrivateEmploymentofPrisonLabor*CharlesC.CoxLexeconInc.RogerE.MeinersUniversityofTexasCArlingtonKeepingpeopleinprisoniscostly.Tohelpdefrayexpenses,prisonerscanberequiredtowork,butrecentexperienceindicateslittlesuccess.Alookatsomehistoricalevidenceaboutprivateemploymentofprisonlabormayprovideinsightsaboutthecurrentsituation.Duringthe19thcentury,prisonersinstatepenitentiarieswerecommonlyemployedbyprivatefirms.Termsofemploymentweresetincontractsnegotiatedbetweenprisonofficialsandthefirms.Sometimesafirmsetupaplantintheprison.Othertimes,afirmtookresponsibilityforguardingtheprisoners,andtheyworkedoutsidetheprison.Revenuesgeneratedbytheconvictlaborcoveredashareofprisoncosts,helpedtosupportprisoners=dependents,andprovidedwagesforsomeprisoners.Proponentsofthecontractsystememphasizeditsefficiencyandclaimeditwaspreferabletoalternativeusesornon-useofconvictlabor.Tradeunionsattackedthesystemforcompetingwithfree(union)labor;manufacturersobjectedtocompetitionfromfirmsemployingconvictlabor;andreformersarguedthatprivateemploymentsubjectedprisonerstointolerable,crueltreatment.*ThankstoDanBenjamin,LouisDeAlessi,ErikFurubotn,CharlesKnoeber,FredMcChesney,RobertMcCormick,andClarkNardinelliforhelpfulcomments.In1885,some67percentofworkingprisonerswereemployedintheprivatesector.Thereafter,thecontractsystemdeclined.Somestatesprohibitedprivateemploymentofconvicts,butitpersistedinotherstates.Eventually,federallegislationallowedstatestorestrict
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