by Valerie Levshin, research associate

At a time when more than two thirds of people released from prison are rearrested within three years, investing in proven reentry programs that can enhance public safety and cut costs is imperative. There is little information, however, to help policymakers identify which reentry programs are cost-effective. To begin addressing this need, Vera’s Cost-Benefit Analysis Unit (CBAU) is partnering with MDRC, a nonprofit social policy research organization in New York City, to conduct a cost-benefit analysis of the Center for Employment Opportunities’ (CEO) programs. CEO, a former Vera project, is one of the largest and best-known employment programs for formerly incarcerated people and is one of four sites in the Enhanced Services for the Hard-to-Employ Demonstration and Evaluation Project, sponsored by the U.S. Department of Health and Human Services, with additional funding from the U.S. Department of Labor.

MDRC conducted a random assignment evaluation of the program and found that it achieves a significant reduction in recidivism rates and a small improvement in employment outcomes. CBAU will draw on those results to conduct its cost-benefit analysis. Because the program significantly decreases recidivism rates, this leads to lower taxpayer expenditures and fewer crime victims. In addition, better employment outcomes could benefit taxpayers by increasing tax revenue. Researchers will estimate these program benefits to both taxpayers and victims. Findings of this cost-benefit analysis will demonstrate whether investing in employment programs like CEO is a cost-effective reentry strategy.

For more information, contact Valerie Levshin at vlevshin@vera.org.

This story appeared in issue 1 of Vera's Research Newsletter.