Much has been written on the causes and negative consequences of arrest and incarceration on the employment and earnings of individuals. Research has documented the social and psychological effects of crime on families and children. But the impact of incarceration on communities has received little attention, other than to document the positive economic benefits of prison building and administration. This article presents a conceptual framework for examining the economic impact of incarceration and suggestions for further research to help shape Federal, State, and local policies that will minimize the loss of human potential to crime and its consequences. The article considers economic implications of incarceration for working-age persons; consequences of incarceration for human development, for employment and income and for crime-related costs; and implications for policy and research. Note, references