According to an empirical study, siting a private prison in a rural county does not increase employment. (Big Prisons, Small Towns: Prison Economics in Rural America by Ryan S. King, Marc Mauer and Tracy Huling, February 2003.)

Their Key Findings:

Overall, over the course of 25 years, we find no significant difference or discernible pattern of economic trends between the seven rural counties in New York that hosted a prison and the seven rural counties that did not host a prison. While prisons clearly create new jobs, these benefits do not aid the host county to any substantial degree since local residents are not necessarily in a position to be hired for these jobs. The most significant findings are as follows:

They go on to detail effects on unemployment during economic recovery, downturn, and boom, and in each period Continue reading →