Penal system has been influenced by the social and economic disadvantagesand can be seen in the family and economic lives of those who were formerly incarcerated. This social stratification has been produced by mass incarceration and has been endured for the given reasons: it is cumulative, invisible and intergenerational. The institutionalized population is usually seen to be present outside the official accounts of economic well-being. It has been seen that the prisoners coming from the lowest rungs of the society have no measure of unemployment or poverty. This has led to underestimation of the disadvantage of the groups having high incarceration rate. As the social and economic penalties are seen to flow from the incarceration stating that inequality is cumulative and is in fact increased for those coming from weaker economic opportunities.