Labor shortages usually produce better working conditions for labor. This was the case after the Black Plague decimated populations in Europe - generally serfdom conditions were relaxed and this is what led to the gradual replacement of serfdom in the first areas where the Enlightenment took root.
Where you tend to get slavery is where the work is highly dangerous or backbreaking or both, but insufficient surplus from the work is created to incentivize workers to voluntarily take on the work. During the Roman Republic and Empire, they literally worked slaves to death in the mines.
Should probably break the slavery into types, as well.
1. Chattel slavery (people are considered the legal property of the slave owners, able to be bought and sold, children born of slaves are born into slavery themselves)
2. Forced labor (being coerced against your will at the threat of violence)
3. Forced conscription (forced to serve in the military)
4. Peonage (involuntarily bound by contract to pay off debts)
5. Indentured servitude (voluntarily entered)
6. Sexual slavery
One thing to consider about slave markets is who is buying the slaves, and what are they paying for the slaves and how are the keeping the slavers from taking what they have?
A problem governments would have is too many mouths to feed. They probably wouldn't be in the market for buying slaves (although, in effect, I would expect most MilGov cantonments to be run like military slave camps where they just compel labor when they need it on the resident population). That leaves who for the buyers? Legitimate question, I'm curious what other folks envision.
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