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Labor coercion and the accumulation of human capital

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  • Bobonis, Gustavo J.
  • Morrow, Peter M.

Abstract

This paper examines the effect of labor coercion on human capital accumulation. We use micro data from Puerto Rico, where unskilled laborers were forced to work for landowners during 1849–1874. Using variation in municipality-level suitability for coffee cultivation and international coffee prices, we estimate the response of schooling to exogenous increases in relative demand for unskilled labor in regimes with and without forced labor. During the coercive regime, increased coffee prices had no effect on individuals' literacy rates in coffee growing regions. Following the abolition of forced labor in 1874, similar changes in coffee prices reduced literacy rates by 12%, consistent with a diminished skill premium in the free labor market regime relative to the coercive period.

Suggested Citation

  • Bobonis, Gustavo J. & Morrow, Peter M., 2014. "Labor coercion and the accumulation of human capital," Journal of Development Economics, Elsevier, vol. 108(C), pages 32-53.
    • Handle: RePEc:eee:deveco:v:108:y:2014:i:c:p:32-53
    DOI: 10.1016/j.jdeveco.2014.01.004
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    More about this item

    Keywords

    Labor coercion; Human capital; Historical development;
    All these keywords.

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean

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