Estimating the Human Costs of Debtor Prisons

In Egypt, a sizable portion of the prison population is incarcerated solely for failing to repay private debts, highlighting serious concerns about the social, economic, and legal consequences of debtor imprisonment. Researchers are conducting two randomized evaluations, the first tests the impact of paying off the debts of incarcerated individuals on their post-release outcomes. The second study examines how the threat of imprisonment affects moral hazards and adverse selection in credit markets.

Research ongoing; results forthcoming.