Chinese Law Prof Blog

Editor: Donald C. Clarke
George Washington University Law School

Tuesday, July 12, 2005

Is Chinese prison labor profitable?

I just read an interesting paper that attempts to study this question using rigorous economic methods. The conclusion the author reaches is yes. Here's the abstract:

Modern coerced labor is a significant global phenomenon, but has been seldom studied empirically. This paper estimates production functions for a set of Chinese prison-labor factories. It finds significant evidence that such factories are managed in a way consistent with the incentives of profit maximization and that, contrary to the findings of earlier work, they are profitable.

The paper is as follows:

Osborne, Evan, "Some Economics of Chinese Prison Labor" (September 2004).

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Tracked on Jul 12, 2005 1:13:16 AM