Debra Satz

This paper considers the normative assessment of bonded labor from the perspectives of libertarianism and Paretian welfare economics. I argue that neither theory can account for our objections to bonded labor arrangements; moreover, they fail in interesting ways. Reflecting on their normative failures focuses us on other considerations besides individual choice and efficiency. Such considerations include: the effects of labor markets on workers' preferences and capacities; the exploitation of the vulnerabilities of the poor; and the permanent binding of one person to another

It is well known that there are large differences in the per capita income levels of the world's states. While a few poor countries are catching up with the rich world, for some countries, the gaps are growing wider. Most of this global inequality isbetweencountries, notwithinthem. In other words, even if income were equalized within countries, a large part of the gap in average income levels between countries would remain.At the same time, the majority of movements in the wealthier countries for greater distributive equality have tended to focus on inequalities within their own borders: on issues such as raising minimum wages, changing the domestic tax rate, and ending national health disparities. This state-centric focus is frequently justified in moral terms. It is a familiar claim, for example, that we have special obligations to our own citizens and that these obligations are both weightier and more extensive than our obligations to strangers outside our borders.