This study seems to completely ignore the socioeconomic factors that often lead to the more serious crimes and resulting longer sentences in the first place. It isn't the longer sentences that are causing incarceration to "spread" to friends and family, it's the fact that the friends and family tend to be in the same socioeconomic position as the person that received the sentence, and thus are just as likely to display similar conduct.
The flawed conclusion in this study is like saying that a whole family is more likely to get wet because one family member gets rained on. While statistically accurate, the fact that one person gets wet doesn't cause the others to get wet; the cause is that they all live in the same environment and are thus far more likely to get wet than those that live in areas where it isn't raining.