NEW YORK — Worth Rises, a non-profit criminal justice advocacy organization, announced today the publication of a groundbreaking cost-benefit analysis independently conducted by leading economics firm Edgeworth Economics. The study, A Cost-Benefit Analysis: The Impact of Ending Slavery and Involuntary Servitude as Criminal Punishment and Paying Incarcerated Workers Fair Wages, presents an in-depth analysis of the fiscal costs and benefits of ending the exploitation of incarcerated workers through fair wage practices. The findings of this first-of-its-kind analysis show that doing so will immensely benefit not only incarcerated workers, but also their families, victims, and society at large.
“We shouldn’t have to make the economic case for ending prison slavery, certainly not in 2024. The protection from slavery should be a basic human right. Still, we understand the legislative interest in planning for such a major public policy change, however overdue,” said Bianca Tylek, founder and Executive Director of Worth Rises. “This study reinforces our stance on the moral imperative to end prison slavery by presenting a compelling economic argument for doing so. By ending the use of slavery as criminal punishment and mandating fair wages for all, we can foster a more humane, equitable, and prosperous society for all.”
Currently, the 13th Amendment of the U.S. Constitution includes an exception to the abolition of slavery and involuntary servitude for criminal punishment. This exception allows hundreds of thousands of incarcerated people to be forced to work for pennies an hour or nothing at all — a central characteristic of enslavement. There are now growing efforts around the country to end the exception in the 13th Amendment and establish labor rights for incarcerated people through federal bills introduced by Senators Jeff Merkley and Cory Booker and Congresswoman Nikema Williams.
Today, the average hourly wage for incarcerated workers is less than one dollar; abolishing slavery and involuntary servitude as criminal punishment, and mandating fair wages for incarcerated workers, will increase their earnings more than tenfold. The total economic benefits of this policy to incarcerated workers, their families and children, crime victims, and society at large is estimated to be between $26.8 billion and $34.7 billion annually, resulting in a net benefit, after deducting government payroll costs, of $18.3 billion to $20.3 billion annually. Moreover, the study projects that the net lifetime benefits from the first 10 years after this policy is introduced will be between $171.3 billion and $189.6 billion.
“There is a compelling fiscal case for abolishing slavery and involuntary servitude in prisons and paying fair wages to incarcerated workers beyond the obvious human rights and social justice concerns they present,” said Steve Bronars, partner at Edgeworth Economics and lead author of the study. “Our economic analysis indicates that the long-term fiscal benefits will significantly outweigh the initial costs to governments and taxpayers. The potential benefits include financial self-sufficiency for incarcerated workers, increased economic stability for impacted families, support to crime victims, additional tax payments, as well as a reduction in crime and incarceration costs due to lower recidivism. The economic case is clear.”
Key Results
The study projects that incarcerated workers will directly benefit from between $11.6 billion and $18.8 billion annually in income, compared to the estimated $847 million they earn today. This increase would significantly enhance their ability to meet their own basic food, hygiene, and communication needs, reducing the financial burden on their families. The valuable work experience they receive will also lead to better employment outcomes after prison, translating into a present value of $11.3 billion to $11.7 billion annually in additional earnings post-release.
Families and children will benefit from saving what they currently spend supporting their incarcerated loved ones and additional financial support to the tune of $4.5 billion to $5.8 billion annually. Crime victims will benefit from the increased payment of victim restitution by incarcerated workers, estimated to be $89 million annually just for robberies. Governments and taxpayers will benefit from tax payments by incarcerated workers of between $1.5 billion and $3.2 billion annually, along with an additional $2.1 billion annually from increased post-release earnings. They will also benefit from $308 million to $431 million annually in payments by incarcerated workers to the welfare system through child support payments. Finally, a 5% reduction in the recidivism and reincarceration rates of formerly incarcerated workers will save governments and taxpayers at least $1.3 billion annually in incarceration costs and $3.7 billion annually in crime costs to the U.S. economy.
In addition to the economic benefits covered in the analysis, the study also acknowledges non-quantifiable benefits that would result from ending slavery and involuntary servitude, and paying incarcerated workers fair wages, such as the improved physical and mental health of incarcerated individuals, and associated costs, from the recognition of their humanity and dignity.
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ABOUT WORTH RISES
Worth Rises is a non-profit advocacy organization dedicated to dismantling the prison industry and ending the exploitation of those it targets. Follow @WorthRises on Twitter, Instagram, and Facebook.
ABOUT EDGEWORTH ECONOMICS
Edgeworth Economics is one of the world’s leading economic consultancies, distinguished for their work in the areas of antitrust, class certification, consumer protection, intellectual property, and labor and employment.