Rei, Claudia (2011): Incentives in Merchant Empires: Portuguese and Dutch Labor Compensation.
Download (554kB) | Preview
The different organizational structure of the Portuguese and Dutch merchant empires affected their ability to monitor workers. I test the theoretical implications of these differences using micro data of overseas workers' compensation from the sixteenth to the eighteenth century. The two merchant empires used significantly different compensation structures: working for the king of Portugal corresponded to a higher bonus share of compensation on average than that of the Dutch East India Company. These results are consistent with theoretical implications and provide additional support to the historical evidence we have on the organizational structure of merchant empires.
|Item Type:||MPRA Paper|
|Original Title:||Incentives in Merchant Empires: Portuguese and Dutch Labor Compensation|
|Keywords:||Merchant Empires, Labor Compensation, Incentives, Monitoring|
|Subjects:||N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy > N34 - Europe: 1913-
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J33 - Compensation Packages ; Payment Methods
|Depositing User:||Claudia Rei|
|Date Deposited:||09. Feb 2011 16:23|
|Last Modified:||11. Feb 2013 19:06|
Allen, R. C., 2001. "The Great Divergence in European Wages and Prices from the Middle Ages to the First World War." Explorations in Economic History 38, 4, 411-447.
Ames, G. J., 2008. The Globe Encompassed: The Age of European Discovery, 1500-1700. Pearson Prentice Hall.
Boxer, C., 1969. The Portuguese seaborne empire, 1415-1825. New York: Alfred A. Knopff Press.
Carlos, A., 1992. "Principal-Agent Problems in Early Trading Companies: A Tale of Two Firms." American Economic Review 82, no. 2, Papers and Proceedings of the Hundred and Fourth Annual Meeting of the American Economic Association, 140-145.
De Vries, J. and A. M. van der Woude, 1997. The first modern economy: success, failure, and perseverance of the Dutch Economy 1500-1815. Cambridge; New York: Cambridge University Press.
Diffie, B. W. and G. D. Winius, 1977c. Foundations of the Portuguese Empire, 1415-1850. Minneapolis: University of Minnesota Press.
Gibbons, R., 1996. "Incentives and Careers in Organizations." NBER Working Paper 5705.
Hejeebu, S., 2005. "Contract Enforcement in the English East India Company." Journal of Economic History 65, 496-523.
Hamilton, E.J., 1948. "The Role of Monopoly in the Overseas Expansion and Colonial Trade of Europe Before 1800." American Economic Review 38, no. 2, Papers and Proceedings of the Sixtieth Annual Meeting of the American Economic Association, 33-53.
Krueger, A.B., 1991. "Ownership, Agency, and Wages: An Examination of Franchising in the Fast Food Industry." Quarterly Journal of Economics 106, no. 1, 75-101.
Lazear, E.P., 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions." American Economic Review 71, no. 4, 606-620.
Lazear, E.P., 1995. Personnel Economics. Cambridge and London: MIT Press.
Lequin, F., 1982. Het personeel van de Vereengide Oostindische Compagnie in Azie. Leiden: F. Lequin.
Luz, F.P.M., 1960. Livro das Cidades e Fortalezas, que a Coroa de Portugal tem nas partes da India e das Capitanias, e mais cargos que nelas ha, e da importância delles. Lisboa: Centro de Estudos Históricos Ultramarinos.
O'Rourke, K. H. and J. G. Williamson, 2009. "Did Vasco da Gama Matter to European Markets?" Economic History Review 62, 3, 655-84.
Morris, H.C., 1904. History of Colonization -- from the Earliest Times to the Present Day. New York and London: The Macmillan Company.
Murphy, K. J., 2000. "Performance Standards in Incentive Contracts." Journal of Accounting and Economics 30, no. 3, 245-278.
Prendergast, C., 1999. "The Provision of Incentives in Firms." Journal of Economic Literature 37, no. 1, 7-63.
Rei, C., 2011. "The Organization of Eastern Merchant Empires," Explorations in Economic History 48, 1 (2011): 116-135.
Salop, S. and J. Salop, 1976. "Self-Selection and Turnover in the Labor Market." Quarterly Journal of Economics 90, no. 4, 619-27.
Sanceau, E., 1967. Good Hope -- The Voyage of Vasco da Gama. Lisboa: Academia Internacional da Cultura Portuguesa.
Shapiro, C. and J. Stiglitz, 1984. "Equilibrium Unemployment as a Discipline Device." American Economic Review 74, no. 3, 433-44.
Williamson, O. E., 1975. Markets and Hierarchies, Analysis and Antitrust Implications: a Study in the Economics of Internal Organization. New York: Free Press.