Prison Industries and the private sector

In 1979, Congress passed the Prison Industry Enhancement (PIE) Act to promote private production within prisons. As of June 1994, 31 states had instituted PIE projects. Using a public choice model, this paper attempts to explain the likelihood that a stat ewould choose to participate in PIE. Using logistic regression, the study finds that states with stronger unions, democratic governors, and high unemployment will be less likely to allow PIE projects. Alternatively, states that exhibit a progressive prison management will be more likely to allow PIE projects.