A labor system in which individuals contract themselves to work for a specified period, typically in exchange for passage to a new land, is a notable historical phenomenon. This agreement bound individuals to service for a set duration, often several years, during which time the employer provided food, lodging, and other necessities. For example, during the colonial era in the Americas, many Europeans, and sometimes Africans, entered into these agreements to secure transportation to the colonies, where labor was in high demand.
This system provided a crucial source of labor for developing economies, particularly in agriculture and domestic service. It offered individuals, who lacked the financial means for independent migration, an opportunity to improve their economic circumstances, albeit under restrictive conditions. However, it is essential to acknowledge that significant disparities existed in the experiences of those bound by such agreements, with some enduring harsh treatment and exploitation, blurring the lines between this system and other forms of unfree labor. The role of the state varied considerably in safeguarding the rights and well-being of these workers.