Claim: European financial institutions could not easily lend to the workers, rendering labor immobile because of capital market imperfections; so to address this imperfection, the Virginia Company never allows laborers to borrow against their future earnings.
Evidence: European financial institutions could not easily lend to the workers since there was no effective way to enforce a loan from across the Atlantic, rendering labor immobile via the Atlantic because of capital market imperfections. To address this imperfection, the Virginia Company would allow laborers to borrow against their future earnings at the Virginia Company for a fixed number of years in order to raise sufficient capital to pay for their voyage.