Economic Consequences of the U.S. Convict Labor System
Abstract
I study the economic spillovers of convict labor on local labor markets and firms. Using newly collected panel data on U.S. prisons from 1886 to 1940, I calculate each county’s exposure to prisons. I exploit quasi-random variation in a county’s exposure to the capacities of pre-convict-labor prisons as an instrument. I find that competition from cheap prison-made goods led to higher unemployment and reduced wages (particularly for women) in counties that housed competing manufacturing industries. Affected industries innovated away from the competition and thus had higher patenting rates. I also document that technological changes in affected industries were capital-biased.
About this workshop
The Public Governance workshop is an online seminar series focused on state of art research in political economy that uses non-traditional data and data-intensive methods.
The workshop gives a platform for the research on the role of governance in designing and developing better policies. Key features are the political environment, the role of the media, the engagement of stakeholders such as civil society and firms, the market structure and level of competition, and the independence of public regulators, among others. Particular emphasis is placed on research with NLP methods due to the proven usefulness of transforming text into data for further econometric analysis.
Periodicity: Mondays from 17h30 to 19h.