THE AIM OF PAYING MARKET ADJUSTED EARNINGS IS TO GIVE THE INMATES THE OPPORTUNITY TO IMPROVE THEIR FINANCIAL AND SOCIAL SITUATIONS IN PREPARATION FOR RELEASE. A CONDITION OF PARTICIPATION IS THAT THOSE SENT TO SKOGOME PRISON BE CAPABLE OF WORK, INTERESTED IN INDUSTRIAL WORK, AND PREPARED, IN ACTIVE COLLABORATION WITH THE STAFF, TO ORDER THEIR FINANCIAL AFFAIRS IN ACCORDANCE WITH A BUDGET PLAN TO BE FORMULATED UPON ARRIVAL AT THE PRISON. THE STUDY EXAMINED THE INMATES' PREVIOUS AND CURRENT SOCIAL AND CRIMINAL BACKGROUND, OUTCOME OF THE FINANCIAL AND BUDGET PLANNING, RECIDIVISM, INMATES' PERCEPTIONS OF THE EXPERIMENT, AND THE INMATES' SOCIAL SITUATIONS 1 YEAR BEFORE AND 1 YEAR AFTER PRISON. THE ANALYSES INVOLVED A SAMPLE OF 218 INMATES ACCEPTED FOR THE EXPERIMENT AT ITS BEGINNING FEBRUARY 1, 1975, AND WHO WERE RELEASED EITHER DIRECTLY FROM THE PRISON OR VIA SOME OTHER PRISON TO WHICH THEY HAD BEEN TRANSFERRED UP TO AND INCLUDING MARCH 31, 1977. FINDINGS SHOWED THAT A SIGNIFICANT NUMBER OF THE INMATES PAID OFF DEBTS WHILE IN PRISON AND MANAGED TO EMERGE FROM PRISON WITH SOME SAVINGS, SOME OF WHICH WERE USED TO IMPROVE HOUSING AFTER RELEASE. EMPLOYMENT AFTER RELEASE WAS NOT IMPROVED FOR SKOGOME INMATES, HOWEVER, LARGELY DUE TO A TIGHT LABOR MARKET WHERE UNEMPLOYMENT WAS CONSIDERABLE. RECIDIVISM FOR THE SKOGOME INMATES WAS MARKEDLY MORE FAVORABLE THAN FOR THE NATIONAL SAMPLE; STATISTICS FOR THE NATIONAL SAMPLE WERE TAKEN FROM A 1973 STUDY, HOWEVER, SO THAT FULL VALIDITY OF COMPARISON CANNOT BE CLAIMED. (AUTHOR ABSTRACT MODIFIED)