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The economic effects of prison closures on local communities

Janjala Chirakijja

Economics Letters, 2023, vol. 228, issue C

Abstract: This study examines the economic impacts of prison closures on local communities in the United States during the early 2010s. Using a difference-in-differences design, my analyses reveal a significant reduction in public-sector employment and a greater impact on low-skilled workers. However, I find little evidence of an adverse spillover effect on private-sector employment. Consequently, the overall implications of prison closures on the broader labor and housing markets are modest.

Keywords: Prison; Local economy; Public-sector employment; Spillover impact; Local demand shock (search for similar items in EconPapers)
JEL-codes: H76 J45 K42 R23 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:228:y:2023:i:c:s0165176523001805

DOI: 10.1016/j.econlet.2023.111155

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