INFORMATION ON FACTORS RELATING TO UNEMPLOYMENT GENERALLY, ON THE CHARACTERISTICS OF ENTERING AND LEAVING PRISON POPULATIONS, AND ON THE IMPACT OF PROGRAMS DESIGNED TO ASSIST OFFENDERS IS REVIEWED. THE CENTRALITY OF THE WORK EXPERIENCE TO THE LIVES OF MOST ADULTS IS POINTED OUT, AS IS THE POTENTIAL OF THE WORK EXPERIENCE FOR PRODUCING DRAMATIC SOCIAL EFFECTS. CORRECTIONAL INDUSTRIES ARE SAID TO BE SADDLED WITH CONFLICTING OBJECTIVES: COMBATING IDLENESS; PROVIDING PRODUCTIVE WORK OPPORTUNITIES; AND REALIZING A PROFIT. THE PROPOSED RESTRUCTURING WOULD REMOVE THE WORK, TRAINING, AND EDUCATIONAL FUNCTIONS FROM CORRECTIONAL PURVIEW AND PLACE THEM WITHIN A SINGLE ORGANIZATION THAT IS PRIVATELY MANAGED AND INMATE OPERATED, WITH PARTICIPATORY MANAGEMENT. THE ORGANIZATION WOULD OFFER PRODUCTIVITY-BASED WAGE RATES AND PROFIT SHARING. UNDER THE PROPOSED MODEL, A PRIVATE SECTOR, PROFIT-MAKING FIRM WOULD OPERATE WITHIN PRISON WALLS. THE ENTERPRISE WOULD BE ORIENTED TOWARD PROFIT AND TOWARD WORKER SELF-DETERMINATION AND WOULD INCORPORATE EDUCATIONAL, TRAINING, AND COUNSELING FUNCTIONS WITHIN THE EMPLOYMENT MODEL. IDEALLY, THE ORGANIZATION WOULD EMPHASIZE PRODUCTION REQUIRING AS BROAD A COMPLEMENT OF SKILLS AS POSSIBLE, THUS OVERCOMING THE TENDENCY OF PRISON INDUSTRIES TO ISOLATE VOCATIONAL TRAINING BY OCCUPATIONAL AREA AND NOT TO TAKE INTO ACCOUNT THE VARIETY OF SKILLS IN THE PRISON POPULATION. RATIONALE FOR THE PROPOSED MODEL, POTENTIAL BENEFITS, AND A POSSIBLE ORGANIZATIONAL STRUCTURE ARE DISCUSSED. (LKM)