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ResearchPaper
2017

Inequality and guard labor, or prohibition and guard labor?

Abstract (English)

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.

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Notes

Publication license

Publication series

Hohenheim discussion papers in business, economics and social sciences; 2017,06

Published in

Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institute of Economics

Examination date

Supervisor

Edition / version

Citation

DOI

ISSN

ISBN

Language
English

Publisher

Publisher place

Classification (DDC)
330 Economics

Original object

Sustainable Development Goals

BibTeX

@techreport{Kufenko2017, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/6127}, author = {Kufenko, Vadim and Geloso, Vincent}, title = {Inequality and guard labor, or prohibition and guard labor?}, year = {2017}, school = {Universität Hohenheim}, series = {Hohenheim discussion papers in business, economics and social sciences}, }
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