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Jail incarceration in rural areas and small jurisdictions has continued to expand despite national decarceration trends, though the reason for this divergence and the implications of incarceration for non-urban communities is not well understood. This study tests three theoretical pathways linking county economic hardship and jail populations using data on county economic hardship, jail populations, and urbanicity from the Vera Institute of Justice. First, jail populations in rural counties may expand in response to economic distress and its correlated social problems. Second, the collateral consequences of jail incarceration may instead exacerbate economic hardship in counties. Finally, counties may turn to jails as an economic development strategy. If this works as intended, county economic distress could predict an expansion of jail capacity, which in turn could improve economic conditions. Preliminary findings provide strong evidence for the first pathway in rural counties, with significant heterogeneity by county urbanicity, but limited evidence for the other two theoretical pathways.