More on Social Impact Bonds

Reframing incentives in social programs (Freakonomics):

“What if you personalize it?” he asks. “What if individual officers, and administrators, personally benefitted by reducing recidivism rates? If you created the right kind of bonus, something that was really meaningful, it would just be fascinating to see how quickly things would change. Guards would be desperate to get educational facilities, they’d want classes, drug treatment, safe environments. Their interests would align with the prisoners’ — they’d care if people came out. They’d care about who shouldn’t come out. It would have an impact on how they think about their work, their life. And you — we, taxpayers, the system — wouldn’t be spending new money, you’d just reallocate.