The failed promise of freedom: Emancipation and wealth inequality in the Caribbean

Abstract

Was there any redistribution of resources in the Caribbean societies after emancipation from slavery? What were ex-slaves’ prospects to improve their socioeconomic status after emancipation? To shed some light on these questions this paper provides unique empirical evidence on patterns of wealth inequality before and after emancipation for the island of St. Croix, a typical slave-based sugar island in the Caribbean. Our findings suggest that there was no decrease in inequality following the institutional break of emancipation. A key explanation, we argue, rest on factor endowments and more specifically on the restrictive land-labor ratios that prevailed on several Caribbean islands, such as St. Croix. Due to these factor endowments, former slaves remained unable to accumulate any substantial amounts of wealth for decades after emancipation.