Coercive Contract Enforcement: Law and the Labor Market in 19th Century Industrial Britain
British Master and Servant law made employee contract breach a criminal offense until 1875. We develop a contracting model generating equilibrium contract breach and prosecutions, then exploit exogenous changes in output prices to examine the effects of labor demand shocks on prosecutions. Positive shocks in the textile, iron, and coal industries increased prosecutions. Following the abolition of criminal sanctions, wages differentially rose in counties that had experienced more prosecutions, and wages responded more to labor demand shocks. Coercive contract enforcement was applied in industrial Britain; restricted mobility allowed workers to commit to risk-sharing contracts with lower, but less volatile, wages.
|Date of creation:||May 2011|
|Date of revision:|
|Publication status:||published as “Coercive Contract Enforcement : Law and the Labor Market in 19th Century Industrial Britain ” (with Noam Yuchtman) - American Economic Review Vol. 103(1) (February 201 3):107 - 144|
|Note:||DAE LE LS POL|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anindita Mukherjee & Debraj Ray, 1992.
Boston University - Institute for Economic Development
29, Boston University, Institute for Economic Development.
- Malcomson, J.M., 1997.
"Contracts, hold-up and labor markets,"
Discussion Paper Series In Economics And Econometrics
9703, Economics Division, School of Social Sciences, University of Southampton.
- M. Machina & E. D. Domar, 1982.
"On the Profitability of Russian Serfdom,"
307, Massachusetts Institute of Technology (MIT), Department of Economics.
- Beaudry, Paul & DiNardo, John, 1991. "The Effect of Implicit Contracts on the Movement of Wages over the Business Cycle: Evidence from Micro Data," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 665-88, August.
- Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
- Ulf von Lilienfeld-Toal & Dilip Mookherjee, 2010. "The Political Economy of Debt Bondage," American Economic Journal: Microeconomics, American Economic Association, vol. 2(3), pages 44-84, August.
- repec:cup:cbooks:9780521142663 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:17051. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.