IT BEGINS WITH AN EXAMINATION OF LEGITIMATE AND ILLEGITIMATE WORK AND OF THE REWARD-COST MODEL OF CRIME. THIS MODEL ARGUES THAT CRIMINALS COMMIT CRIME AS RATIONAL BEINGS WHO WEIGH THE COST AND CHANCE OF BEING CAUGHT AGAINST THE GAINS TO BE REALIZED FROM ILLEGAL ACTS. FOR SIMILAR REASONS, THE EX-OFFENDER REOFFENDS HIS CHANCES OF FINDING AND HOLDING LEGITIMATE WORK ARE SMALL SINCE HE SUFFERS FROM DISCRIMINATION, INTERRUPTION IN WORK HISTORY, AND SLUMPING OF HIS WORK SKILLS DUE TO THE TIME SPENT IN PRISON. THE LOGICAL RESPONSE BY THE CORRECTIONS SYSTEM THEN, ACCORDING TO THIS BOOK, WOULD BE TO INCREASE THE EX-PRISONERS' CHANCES OF EMPLOYMENT BY STRENGTHENING WORK AND VOCATIONAL TRAINING PROGRAMS. A LARGE BODY OF EMPIRICAL EVIDENCE SUPPORTS THE APPROPRIATENESS OF SUCH A RESPONSE. JUDGED ON THE BASIS OF RECIDIVISM RATES OF PARTICIPANTS, A NUMBER OF WORK-RELEASE, VOCATIONAL EDUCATION, JOB-PLACEMENT, AND FINANCIAL-ASSISTANCE-UPON-RELEASE PROGRAMS HAVE BEEN JUDGED EFFECTIVE. THE PRESENT REALITIES OF PRISONS IN EACH JURISDICTION OF AUSTRALIA (EXCLUDING THE AUSTRALIAN CAPITAL TERRITORY) ARE DESCRIBED FOR THE AREAS OF PRISON INDUSTRY, EDUCATION, TRADE TRAINING, WORK RELEASE, AND JOB-PLACEMENT SERVICES. FURTHERMORE, POLICY PROPOSALS FOR EACH OF THESE AREAS ARE SUBMITTED, FOLLOWING A DISCUSSION OF CONSTRAINTS ON EFFECTIVE OPERATION OF PRISON INDUSTRIES. THESE PROPOSALS INCLUDE REMOVAL OF RESTRAINTS ON MARKETS FOR PRISON PRODUCE; RECRUITMENT OF PERSONNEL WITH MANAGERIAL, MARKETING, AND INDUSTRY EXPERIENCE; ELIMINATION OF RULES REGARDING TYPES OF PRISONERS ELIGIBLE FOR WORK RELEASE; PROVISION OF NORMAL WAGES AND WORKING HOURS FOR WORK-RELEASE AND PRISON INDUSTRY WORKERS; CLOSER COOPERATION WITH BUSINESS IN RECRUITMENT EFFORTS AND TRAINING PROGRAMS; ADOPTION OF REGULATIONS REQUIRING GOVERNMENT EMPLOYMENT OF ONE-THIRD OF ALL PRISON RELEASEES, AND MORE. SPECIAL EMPLOYMENT PROBLEMS OF THE TWO MOST DISADVANTAGED AND NEGLECTED EX-OFFENDER GROUPS--ABORIGINES AND WOMEN--ARE CONSIDERED. TABLES, FOOTNOTES, AND AN INDEX ARE INCLUDED. (DAG)