Hazal Sezer (Tilburg University): “Convicts and Comrades: Coerced Labor’s Impact on the First Labor Unions."

Abstract:
What role did coerced labor play in establishing the first labor unions? This paper introduces a model where certain firms employ convict labor, reproducing the empirical patterns observed in the data. As a result, workers face reduced wages and migrate to other firms, while firms see heightened profits. In response, workers organize, form unions, and initiate strikes. I use an instrumental variable approach to demonstrate that, at the turn of the 20th century, Black convict labor significantly boosted white union growth, strikes, and membership in the Southern United States. My empirical findings further suggest that this influence has persisted as counties with a history of heavy dependence on convict labor continue to display higher rates of union membership in the present day. Finally, the calibrated model presents a novel finding: the role of unions in increasing Black–white wage inequality.