Joshua Rosenbloom, University of Kansas
During the seventeenth and eighteenth centuries a variety of labor market institutions developed to facilitate the movement of labor in response to the opportunities created by American factor proportions. While some immigrants migrated on their own, the majority of immigrants were either indentured servants or African slaves.
Because of the cost of passage—which exceeded half a year’s income for a typical British immigrant and a full year’s income for a typical German immigrant—only a small portion of European migrants could afford to pay for their passage to the Americas (Grubb 1985a). They did so by signing contracts, or “indentures,” committing themselves to work for a fixed number of years in the future—their labor being their only viable asset—with British merchants, who then sold these contracts to colonists after their ship reached America. Indentured servitude was introduced by the Virginia Company in 1619 and appears to have arisen from a combination of the terms of two other types of labor contract widely used in England at the time: service in husbandry and apprenticeship (Galenson 1981). In other cases, migrants borrowed money for their passage and committed to repay merchants by pledging to sell themselves as servants in America, a practice known as “redemptioner servitude (Grubb 1986). Redemptioners bore increased risk because they could not predict in advance what terms they might be able to negotiate for their labor, but presumably they did so because of other benefits, such as the opportunity to choose their own master, and to select where they would be employed.
Although data on immigration for the colonial period are scattered and incomplete a number of scholars have estimated that between half and three quarters of European immigrants arriving in the colonies came as indentured or redemptioner servants. Using data for the end of the colonial period Grubb (1985b) found that close to three-quarters of English immigrants to Pennsylvania and nearly 60 percent of German immigrants arrived as servants.
A number of scholars have examined the terms of indenture and redemptioner contracts in some detail (see, e.g., Galenson 1981; Grubb 1985a). They find that consistent with the existence of a well-functioning market, the terms of service varied in response to differences in individual productivity, employment conditions, and the balance of supply and demand in different locations.
The other major source of labor for the colonies was the forced migration of African slaves. Slavery had been introduced in the West Indies at an early date, but it was not until the late seventeenth century that significant numbers of slaves began to be imported into the mainland colonies. From 1700 to 1780 the proportion of blacks in the Chesapeake region grew from 13 percent to around 40 percent. In South Carolina and Georgia, the black share of the population climbed from 18 percent to 41 percent in the same period (McCusker and Menard, 1985, p. 222). Galenson (1984) explains the transition from indentured European to enslaved African labor as the result of shifts in supply and demand conditions in England and the trans-Atlantic slave market. Conditions in Europe improved after 1650, reducing the supply of indentured servants, while at the same time increased competition in the slave trade was lowering the price of slaves (Dunn 1984). In some sense the colonies’ early experience with indentured servants paved the way for the transition to slavery. Like slaves, indentured servants were unfree, and ownership of their labor could be freely transferred from one owner to another. Unlike slaves, however, they could look forward to eventually becoming free (Morgan 1971).
Over time a marked regional division in labor market institutions emerged in colonial America. The use of slaves was concentrated in the Chesapeake and Lower South, where the presence of staple export crops (rice, indigo and tobacco) provided economic rewards for expanding the scale of cultivation beyond the size achievable with family labor. European immigrants (primarily indentured servants) tended to concentrate in the Chesapeake and Middle Colonies, where servants could expect to find the greatest opportunities to enter agriculture once they had completed their term of service. While New England was able to support self-sufficient farmers, its climate and soil were not conducive to the expansion of commercial agriculture, with the result that it attracted relatively few slaves, indentured servants, or free immigrants. These patterns are illustrated in Table 1, which summarizes the composition and destinations of English emigrants in the years 1773 to 1776.
English Emigration to the American Colonies, by Destination and Type, 1773-76
Source: Grubb (1985b, p. 334).
Dunn, Richard S. “Servants and Slaves: The Recruitment and Employment of Labor.” In Colonial British America: Essays in the New History of the Early Modern Era, edited by Jack P. Greene and J.R. Pole. Baltimore: Johns Hopkins University Press, 1984.
Galenson, David W. White Servitude in Colonial America. New York: Cambridge University Press, 1981.
Galenson, David W. “The Rise and Fall of Indentured Servitude in the Americas: An Economic Analysis.” Journal of Economic History 44, no. 1 (1984): 1-26.
Grubb, Farley. “The Market for Indentured Immigrants: Evidence on the Efficiency of Forward Labor Contracting in Philadelphia, 1745-1773.” Journal of Economic History 45, no. 4 (1985a): 855-68.
Grubb, Farley. “The Incidence of Servitude in Trans-Atlantic Migration, 1771-1804.” Explorations in Economic History 22 (1985b): 316-39.
Grubb, Farley. “Redemptioner Immigration to Pennsylvania: Evidence on Contract Choice and Profitability.” Journal of Economic History 46, no. 2 (1986): 407-18.
McCusker, John J. and Russell R. Menard. The Economy of British America: 1607-1789. Chapel Hill: University of North Carolina Press, 1985.
Morgan, Edmund S. “The Labor Problem at Jamestown, 1607-18.” American Historical Review 76 (1971): 595-611.
Citation: Rosenbloom, Joshua. “Indentured Servitude in the Colonial U.S.”. EH.Net Encyclopedia, edited by Robert Whaples. March 16, 2008. URL http://eh.net/encyclopedia/indentured-servitude-in-the-colonial-u-s/