In the eighteenth-century British Empire and the antebellum South, slaves were concentrated in domestic service and rural enterprises like agriculture and ironworks. I argue that employers in these sectors chose to employ slaves rather than free labor because they faced especially high turnover costs—that is, costs of searching for a worker and going without labor when a free worker quit or was fired. In the absence of slavery, these sectors were marked by other institutions designed to deal with turnover costs: indentured servitude, employment agencies, and deferred compensation.

Using the records of British firms that supplied nearly 90 percent of world trade in cotton spinning machinery, we track the evolution and diffusion of spinning technology over more than 50 years. In contrast to scenarios in which modern technologies supplant older methods, we observe two paradigms in competitive coexistence, each one supporting ongoing productivity growth through complementary improvements in machinery, organization, and workforce skills. International productivity differences were magnified under the skill-based mule, British spinners being the world's best. Global diffusion of ring spinning was driven by advances in fiber control, a “directed” technological response to the expansion of world trade.

Despite the widespread acceptance of Friedman and Schwartz's interpretation of the 1936/37 increase in member bank reserve requirements as the major cause of the 1937/38 recession there is surprisingly little straightforward evidence on this issue, perhaps because data limitations and structural instability preclude econometric modeling. We exploit a simple alternative, comparing member banks with nonmember banks not subject to changes in reserve requirements. The results support the hypothesis that the increase in reserve requirements reduced the availability of bank credit and contributed to the recession.

The purpose of this study is to provide a quantitatively-based description of the main trends in the domestic structure and international position of the London money market during the eighteenth century. Using monthly data for the years 1731 to 1789, the findings supported the general hypothesis of the existence of a trend toward increased association between the money markets during the course of the century, but at the same time indicated variation in the inter-market relationships between sub-periods.

New data on mortality and voyage length in the nineteenth-century slave trade make possible further testing of hypotheses on why slaves died during the middle passage. Mortality rates (defined as death per slaves embarked/voyage length in days × 1000) were higher in the nineteenth century than in earlier centuries and varied markedly between regions of embarkation. In the high mortality regions, all ships in the sample appeared to have experienced a higher death rate, suggesting that epidemics were not of prime importance. Mortality rates do not appear to have fluctuated very much during the voyage nor does the slaves–per–ton variable have much explanatory power. The major explanation is probably endemic disease.

In prewar Japan, many banks were controlled by industrial companies through capital and personal relationships. The literature has pointed out that those banks engaged in unsound lending to their related companies, which resulted in damage to the financial system (organ bank hypothesis). In this article we examine this hypothesis by measuring director interlocking between banks and nonbanking companies. It was found that more than 80 percent of ordinary banks had director interlocking with at least one nonbanking company. Also, regression analyses confirmed that director interlocking had a negative effect on bank performance, especially for smaller banks.

In the early 1910s state governments debated the private versus public underwriting of workers' compensation risk. The choices they made established the existing system today and set the stage for later debates over the government's underwriting of unemployment, health, and disability risks. This article offers both quantitative and case-study analyses of states' original choices between public and private insurance. Monopoly state funds were adopted in some states because of an unusual combination of strong unions and weak insurance and agricultural interests. In other states, the emergence of progressive political coalitions played the decisive role.

Even in a country whose patron saint is the Horatio Alger hero, there is no parallel to their [the Japanese American] success strory.

The view that Japanese and other Asian Americans constituted an economic success story gained popularity in the mass media and among scholars during the 1960s. At a time when the demands of the Civil Rights movement were challenging the government to redress the racism ingrown in American society, Japanese and other Asian Americans were often held up as “model minorities” who had overcome discrimination through their own efforts and without aid from government laws or service programs2. This practise has led to a debate over both the extent of the successs of Asian Americans and the reasons for their economic achievement3.

Until the end of the nineteenth century, Japan raised its per capita income, starting from a low level, by exporting primary commodities and importing manufactured goods. Around the turn of the century, Japan became a net importer of natural resources. Yet it is doubtful that Japan ever suffered severely from a shortage of natural resources before the Manchurian Incident of 1931. It was the military expansion in the 1930s that created an artificial shortage of mineral resources, the wholesale exodus of population, and a lowering in the standard of living of the general public.

Like Europeans and colonists, eighteenth-century Native Americans were purchasing a greatly expanded variety of goods. As fur prices rose from 1716 to 1770, there was a shift in expenditures from producer and household goods to tobacco, alcohol, and other luxuries by Indians who traded furs at the Hudson's Bay Company's York Factory post. A consumer behavior model, using company accounts, shows that Indians bought more European goods in response to higher fur prices and, perhaps more importantly, increased their effort in the fur trade. These findings contradict much that has been written about Indians as producers and consumers.

Investors in new stock issues in Germany in the 1880s experienced low spreads between the price they paid for stock and the price at which they could sell the stock in the market. Stock issuing companies paid substantial fees to underwriting banks, and these costs increased with the underwriter's market share. Bank's faced lower issuing costs than did nonfinancial firms. These patterns are consistent with a situation in which underwriters exploited their access to better information (agency problems) and had market power, but do not support the supposed lemons problems that motivated the imposition of stringent regulations in 1896.

More than a century after its termination the slave trade in Africa remains a controversial topic. In particular, disputes continue to wax strong over the profitability of the Atlantic slave trade, on three major dimensions: first, the degree of competition characteristic of the market in slaves; second, the typical magnitude of the rate of profit achieved by enterprises engaged in the “peculiar” industry; third, the status of Eric Williams's hypothesis on the contribution of the slave trade to European industrialization.

This paper examines the proposition that U.S. manufacturing experienced biased technical change during the period 1850–1919. Tests for bias, in Hicksian terms, are conducted using the translog cost dual. Redefined census data permit these tests to be made at the two-digit level of industry classification and with four inputs considered—labor, capital, materials, and a residual factor input. The tests demonstrate that labor-saving and capital-using biases existed, but material-using biases also were present. Furthermore, the patterns of bias varied considerably from industry to industry and often were of such a magnitude as to overpower ordinary substitution effects.

Increasing our knowledge of Tokugawa economic history is important for a better understanding of the causes of the rapid Japanese industrialization which followed, but as yet no attempt has been made to provide a theoretical framework with which to analyze the Tokugawa economy. The cost of neglecting to work out a new economic history of Tokugawa Japan is high. Many Western historians, economic as well as others, continue to make use of findings and interpretations provided by Japanese economic historians, most of whom are Marxist in their ideological and methodological orientations. Presented with the force of ideological conviction and repeated in book after book, the Marxist view of Tokugawa economic history is so deeply rooted in Japanese literature that it can claim many followers who make use of its interpretations and views without suspecting the ideological and methodological framework upon which they rest. Another increasingly serious cost is that many of the research findings contributed recently by a few Western scholars and a small group of Japanese economic historians continue to remain disjointed findings in search of an analytical framework which can accommodate them into a meaningful whole.

We explore the dynamics of the agricultural ladder for black farmers in the U.S. South using individual-level data from a retrospective survey conducted in 1938 in Jefferson County, Arkansas. We develop and test hypotheses to explain the time spent as a tenant, sharecropper, and wage laborer. The most striking result of our analysis is the importance of individual characteristics in career mobility. In all periods—pre–World War I; the war years, and subsequent boom; the 1920s; and the Great Depression years—some farmers moved up the agricultural ladder quite rapidly while others remained stuck on a rung.

Movement from rung to rung has been predominantly in the direction of descent rather than ascent. … [There is] an increasing tendency for the rungs of the ladder to become bars—forcing imprisonment in a fixed social status from which it is increasingly difficult to escape.National Resources CommitteeNational Resources Committee, “Report.”

The purpose of the following essay is to evaluate the existing economic opportunities for Jewish immigrants from Eastern Europe and to indicate the pace of their economic progress during the period 1890–1914. This purpose can best be achieved by viewing the mass migration of these European Jews in the proper perspective, that is, in terms of the dynamics of their situation at the places of original habitat; second, by differentiating successive cohorts of immigrants in terms of their skill composition, literacy, and degree of experienced urbanization, all elements important for the adaptability to and utilization of existing economic opportunities; third, by analyzing the structure of the U.S. industries that provided employment opportunities to the East European Jewish immigrants; fourth, by assuming the income level and standard of living of the native-born labor force as the yardstick for measuring the economic progress of the immigrants. Such an approach may broaden our understanding of the mechanism of adjustment that enabled the Jewish immigrants from Eastern Europe both to take advantage of existing economic opportunities and to create new ones.

Before 1850, American farms were cut from the forest, and the work of forming a farm took time. The clearing of a few acres for first crops was followed by the endless labors of improvement—fencing, building, ditching, and the ambitions of a farmer for land could load him down for life with acres to clear and keep up. Five acres of forest clearing in a year in addition to current crops was about the limit for a farm family. Improved land could be a cash crop like any other, its yield no more risky than wheat or cotton, and only a little more remote. But even farmers who specialized in clearing land for sale might count on two hundred acres or so of forest clearing as the labor of a lifetime. The work of clearing forest was extremely hard, but it could be done in off-season, and deprived a settler not of cash income but only of hours of idleness. Nearly all the tasks could be done by the little labor force under a farmer's control—by sons, or on southern plantations by slaves; and the work converted otherwise half-idle labor into an important form of farm capital.

This note investigates the sources of variation in the growth of per capita personal incomes across U.S. states during the Great Depression. States entering the economic contraction with relatively low per capita incomes tended to suffer larger percentage declines in per capita income than did high income states. By contrast, low-income states tended to experience larger percentage gains during the recovery. Hence, state per capita incomes diverged during the contraction phase and converged during the recovery phase.

Relying mainly on the manuscript records of the Royal African Company, we explore the factors that contributed to the large gap between slave prices in Africa and the Caribbean. Twenty-two voyages from the mid-1680s are analyzed. These were conducted with hired ships and the payments to the shipowners and captains were recorded. In addition to transport costs, mortality and morbidity had a big effect on slave prices; while the earnings from the trade in gold and ivory had a moderating influence. The effect of mortality and transport costs on slave prices during the eighteenth century is also explored.