Chinese Sojourn Labor and the American Transcontinental Railroad

This paper considers the institutional arrangements and labor market forces that interacted in the construction of America's transcontinental railroad. The demand for Chinese laborers on the transcontinental railroad was a product of a complex set of relationships, including the transaction costs of turnover costs, labor queuing and demand-side learning. Institutions that facilitated the supply of Chinese workers included the Chinese Six Companies. The influences of external factors, such as the discovery of gold in California, construction of America's transcontinental railroad, and racial prejudice are also considered.