Although a range of opinions about the impact of incarceration on later offending have been articulated, there have been very few studies of sufficient methodological quality to allow the effect to be examined empirically. Drawing on a sample of 5,500 male offenders from 1 of 10 regions in the United Kingdom, propensity score matching was used to balance the preexisting differences between two groups of offenders: those who had been incarcerated for their index offense and those who had received community orders involving supervision. Both methods of balancing the group differences (matching/stratification) suggested that 1 year after release, offenders who had been incarcerated were significantly more likely to have committed another (proven) offense. These offenders also tended to commit more offenses and started reoffending earlier than those supervised in the community. Moreover, offenders who had originally been incarcerated were much more likely to be reincarcerated. In line with other emerging evidence, it was concluded that incarceration tends to slightly increase rather than decrease the chances of future offending. Limitations of the research are considered and directions for future research are explored.