Juvenile incarceration and crime after release: short-term evidence from a Harsher law

ABSTRACT We analyse the impact of longer incarceration terms in juvenile correctional facilities on short-term criminal recidivism. We exploit a legal modification in Uruguay that significantly increased the sentence length for violent crimes. We find that more time in custody, even under very harsh conditions, is associated with reductions in reoffending. Although in line with much of the related economic literature, our findings question recent empirical findings suggesting that juvenile incarceration increases criminal recidivism.