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Outline

The Economics of Greco-Roman Slavery

2025

Abstract

This paper investigates the economic aspects of slavery in the ancient Greco-Roman world. Existing evidence reveals significant variation in the relative cost of slaves compared to unskilled wages: it appears that at different times and places, a typical slave could be purchased for prices equivalent to wages paid from 150 to 1000 days of unskilled labor. To explain this great disparity, we develop a principal-agent model that predicts the return on slaves relative to wages, which varies as a function of the prevalence of slavery in the labor force. This model implies that slavery may have increased aggregate labor productivity by reallocating workers from less productive to more productive regions within the Greco-Roman world.

Key takeaways
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  1. Slaves in Greco-Roman societies cost between 150 and 1000 days of unskilled labor wages.
  2. The developed principal-agent model predicts slavery enhances productivity by reallocating labor to more productive areas.
  3. High monitoring costs and societal constraints influenced slave prices and profitability in Attica and Roman Egypt.
  4. Slaves could accumulate assets and change occupations, contrasting with modern plantation slavery.
  5. The model's calibration aligns with historical wage and slave price data from Classical Athens and Roman Egypt.

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