Inequality and guard labor, or prohibition and guard labor?

Arbeitspapier

In this paper, we consider whether or not inequality forces society to expend more resources on supervision which imposes an extra cost to doing business. Some argue that since inequality deteriorates social capital, there is a greater need for supervisory labor which is a costly burden to bear. We propose an alternative (but not mutually exclusive) explanation. We argue that the war on drugs leads to institutional decay and lower levels of trust which, in turn, force private actors to deploy resources to supervise workers and protect themselves. Our explanation complements the argument regarding the link between inequality and guard labor.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Hohenheim Discussion Papers in Business, Economics and Social Sciences ; No. 06-2017

Classification and Topics

• Classification: Wirtschaft ; Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: U.S.; Canada: Pre-1913 ; Economic History: Financial Markets and Institutions: U.S.; Canada: Pre-1913 ; Price Level; Inflation; Deflation
• Subject: Economic Growth ; Inequality ; Drugs ; Guard Labor

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Geloso, Vincent ; Kufenko, Vadim
• Event: Veröffentlichung
• (who): Universität Hohenheim, Fakultät Wirtschafts- und Sozialwissenschaften
• (where): Stuttgart
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/155769
• URN: urn:nbn:de:bsz:100-opus-13378
• Last update: 10.03.2025, 11:41 AM CET