The system described is the encomienda system.
What informed the system?
The encomienda was a grant of land given to Spanish settlers, known as encomenderos, by the Spanish crown. In return for these grants, encomenderos were expected to Christianize and "civilize" the native populations living on the land.
The native people, often referred to as encomienda Indians, were technically free, but in reality, they were subjected to harsh conditions. The encomenderos had the right to extract tribute from the indigenous people in the form of goods, labor, or other services. While the encomienda was initially intended as a way to protect and care for the indigenous populations, it often led to the exploitation and abuse of native labor.
The encomienda system contributed to the socio-economic hierarchy of colonial societies in the Americas, where a small Spanish elite held significant land and wealth, while the indigenous populations faced exploitation and oppression. Over time, as concerns about the mistreatment of native populations grew, the encomienda system faced criticism and was gradually replaced by other forms of labor systems, such as the repartimiento and hacienda systems.
Complete question:
In this system, people were granted large estates by the Spanish government. The native people living on the land were technically free laborers who earned wages, but they were unable to leave, so they had no choice but to work for the landowners. What is the system?