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Recruitment Restrictions and Labor Markets: Evidence from the Postbellum U.S. South

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  • Suresh Naidu

Abstract

This article studies the effect of recruitment restrictions on mobility and wages in the postbellum U.S. South. I estimate the effects of criminal fines charged for "enticement" (recruiting workers already under contract) on sharecropper mobility, tenancy choice, and agricultural wages. I find that a $13 (10%) increase in the enticement fine lowered the probability of a move by black sharecroppers by 12%, daily wages by 1 cent (.1%), and the returns to experience for blacks by 0.6% per year. These results are consistent with an on-the-job search model, where the enticement fine raises the cost of recruiting an employed worker. (c) 2010 by The University of Chicago. All rights reserved.

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  • Suresh Naidu, 2010. "Recruitment Restrictions and Labor Markets: Evidence from the Postbellum U.S. South," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 413-445, April.
  • Handle: RePEc:ucp:jlabec:v:28:y:2010:i:2:p:413-445
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    Cited by:

    1. Jeremy T. Fox, 2010. "Estimating the Employer Switching Costs and Wage Responses of Forward-Looking Engineers," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 357-412, April.
    2. Orley C. Ashenfelter & Henry Farber & Michael R. Ransom, 2010. "Modern Models of Monopsony in Labor Markets: A Brief Survey," Working Papers 1223, Princeton University, Department of Economics, Industrial Relations Section..
    3. Depew, Briggs & Fishback, Price V. & Rhode, Paul W., 2013. "New deal or no deal in the Cotton South: The effect of the AAA on the agricultural labor structure," Explorations in Economic History, Elsevier, vol. 50(4), pages 466-486.
    4. William J. Collins & Marianne H. Wanamaker, 2014. "Selection and Economic Gains in the Great Migration of African Americans: New Evidence from Linked Census Data," American Economic Journal: Applied Economics, American Economic Association, vol. 6(1), pages 220-252, January.
    5. NAKABAYASHI, Masaki, 2014. "From the Substance to the Shadow: The Court Embedded into Japanese Labor Markets," ISS Discussion Paper Series (series F) f168, Institute of Social Science, The University of Tokyo, revised 28 Mar 2014.
    6. Collins, William J. & Wanamaker, Marianne H., 2015. "The Great Migration in Black and White: New Evidence on the Selection and Sorting of Southern Migrants," The Journal of Economic History, Cambridge University Press, vol. 75(04), pages 947-992, December.
    7. Kha Yen Prentice & László Kónya & David Prentice, 2013. "Was the African American great migration delayed by outlawing emigrant agents?," Working Papers 2013.06, School of Economics, La Trobe University.
    8. Richard Hornbeck & Suresh Naidu, 2014. "When the Levee Breaks: Black Migration and Economic Development in the American South," American Economic Review, American Economic Association, vol. 104(3), pages 963-990, March.
    9. Orley C. Ashenfelter & Henry Farber & Michael R. Ransom, 2010. "Modern Models of Monopsony in Labor Markets: A Brief Survey," Working Papers 1223, Princeton University, Department of Economics, Industrial Relations Section..
    10. Suresh Naidu & Yaw Nyarko & Shing-Yi Wang, 2014. "Worker Mobility in a Global Labor Market: Evidence from the United Arab Emirates," NBER Working Papers 20388, National Bureau of Economic Research, Inc.
    11. Katherine Eriksson, 2015. "Access to Schooling and the Black-White Incarceration Gap in the Early 20th Century US South: Evidence from Rosenwald Schools," NBER Working Papers 21727, National Bureau of Economic Research, Inc.
    12. Tyrefors Hinnerich, Bjorn & Lindgren, Erik & Pettersson-Lidbom, Per, 2017. "Political Power, Resistance to Technological Change and Economic Development: Evidence from the 19th century Sweden," Research Papers in Economics 2017:5, Stockholm University, Department of Economics.
    13. Canaday, Neil & Jaremski, Matthew, 2012. "Legacy, location, and labor: Accounting for racial differences in postbellum cotton production," Explorations in Economic History, Elsevier, vol. 49(3), pages 291-302.
    14. Orley C. Ashenfelter & Henry Farber & Michael R Ransom, 2010. "Labor Market Monopsony," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 203-210, April.

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