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"Automation" of Manufacturing in the Late Nineteenth Century: The Hand and Machine Labor Study

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  • Jeremy Atack
  • Robert A. Margo
  • Paul W. Rhode

Abstract

Recent advances in artificial intelligence and robotics have generated a robust debate about the future of work. An analogous debate occurred in the late nineteenth century when mechanization first transformed manufacturing. We analyze an extraordinary dataset from the late nineteenth century, the Hand and Machine Labor study carried out by the US Department of Labor in the mid-1890s. We focus on transitions at the task level from hand to machine production, and on the impact of inanimate power, especially of steam power, on labor productivity. Our analysis sheds light on the ability of modern task-based models to account for the effects of historical mechanization.

Suggested Citation

  • Jeremy Atack & Robert A. Margo & Paul W. Rhode, 2019. ""Automation" of Manufacturing in the Late Nineteenth Century: The Hand and Machine Labor Study," Journal of Economic Perspectives, American Economic Association, vol. 33(2), pages 51-70, Spring.
  • Handle: RePEc:aea:jecper:v:33:y:2019:i:2:p:51-70
    Note: DOI: 10.1257/jep.33.2.51
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    Cited by:

    1. Leah Platt Boustan & Jiwon Choi & David Clingingsmith, 2024. "The Political Fallout of Machine Tool Automation in the Mid-20th Century United States," NBER Chapters, in: The Economic History of American Inequality: New Evidence and Perspectives, National Bureau of Economic Research, Inc.
    2. Ager, Philipp & Goñi, Marc & Salvanes, Kjell Gunnar, 2023. "Gender-biased technological change: Milking machines and the exodus of women from farming," Discussion Paper Series in Economics 16/2023, Norwegian School of Economics, Department of Economics.
    3. Atack, Jeremy & Margo, Robert A. & Rhode, Paul W., 2024. "De-skilling: Evidence from late nineteenth century American manufacturing," Explorations in Economic History, Elsevier, vol. 91(C).
    4. Antón, José-Ignacio & Fernández-Macías, Enrique & Winter-Ebmer, Rudolf, 2020. "Does Robotization Affect Job Quality? Evidence from European Regional Labour Markets," IZA Discussion Papers 13975, Institute of Labor Economics (IZA).
    5. Savin, Ivan & Ott, Ingrid & Konop, Chris, 2022. "Tracing the evolution of service robotics: Insights from a topic modeling approach," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    6. Avi Goldfarb, 2024. "Pause artificial intelligence research? Understanding AI policy challenges," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(2), pages 363-377, May.
    7. Guimarães, Luís & Mazeda Gil, Pedro, 2022. "Looking ahead at the effects of automation in an economy with matching frictions," Journal of Economic Dynamics and Control, Elsevier, vol. 144(C).
    8. Benjamin Schneider & Hillary Vipond, 2023. "The Past and Future of Work: How History Can Inform the Age of Automation," CESifo Working Paper Series 10766, CESifo.
    9. David Autor & Caroline Chin & Anna M. Salomons & Bryan Seegmiller, 2022. "New Frontiers: The Origins and Content of New Work, 1940–2018," NBER Working Papers 30389, National Bureau of Economic Research, Inc.
    10. Jeremy Atack & Robert A. Margo & Paul W. Rhode, 2024. "Wage Inequality in American Manufacturing, 1820–1940: New Evidence," NBER Chapters, in: The Economic History of American Inequality: New Evidence and Perspectives, National Bureau of Economic Research, Inc.
    11. Toon Van Overbeke, 2023. "Conflict or cooperation? Exploring the relationship between cooperative institutions and robotisation," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 550-573, September.
    12. Bernardo S Buarque & Ronald B Davies & Ryan M Hynes & Dieter F Kogler, 2020. "OK Computer: the creation and integration of AI in Europe," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 13(1), pages 175-192.
    13. Caitlin Allen Whitehead & Haroon Bhorat & Robert Hill & Tim Köhler & François Steenkamp, 2021. "The Potential Employment Implications of the Fourth Industrial Revolution Technologies: The Case of the Manufacturing, Engineering and Related Services Sector," Working Papers 202106, University of Cape Town, Development Policy Research Unit.
    14. John Carter Braxton & Kyle F. Herkenhoff & Jonathan Rothbaum & Lawrence Schmidt, 2021. "Changing Income Risk across the US Skill Distribution: Evidence from a Generalized Kalman Filter," Opportunity and Inclusive Growth Institute Working Papers 55, Federal Reserve Bank of Minneapolis.
    15. Kaplan, Andreas & Haenlein, Michael, 2020. "Rulers of the world, unite! The challenges and opportunities of artificial intelligence," Business Horizons, Elsevier, vol. 63(1), pages 37-50.
    16. Chuan, Amanda & Zhang, Weilong, 2023. "Non-college Occupations, Workplace Routinization, and the Gender Gap in College Enrollment," IZA Discussion Papers 16089, Institute of Labor Economics (IZA).
    17. Jeff Borland & Michael Coelli, 2023. "The Australian labour market and IT-enabled technological change," Melbourne Institute Working Paper Series wp2023n01, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    18. Raphaël Franck, 2022. "Labor Scarcity, Technology Adoption and Innovation: Evidence from the Cholera Pandemics in 19th Century France," CESifo Working Paper Series 9528, CESifo.
    19. Marvin Goodfriend & John McDermott, 2021. "The American System of economic growth," Journal of Economic Growth, Springer, vol. 26(1), pages 31-75, March.
    20. José-Ignacio Antón & David Klenert & Enrique Fernández-Macías & Maria Cesira Urzì Brancati & Georgios Alaveras, 2022. "The labour market impact of robotisation in Europe," European Journal of Industrial Relations, , vol. 28(3), pages 317-339, September.
    21. Jeremy Atack & Robert A. Margo & Paul Rhode, 2020. "‘Mechanization Takes Command’: Inanimate Power and Labor Productivity in Late Nineteenth Century American Manufacturing," NBER Working Papers 27436, National Bureau of Economic Research, Inc.
    22. Matej Belin, 2021. "Does Robots´Reach Exceed Their Grasp? Differential Impacts of Robot Adoption and Spillover Effects on Workers in the Czech Republic," CERGE-EI Working Papers wp688, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    23. Schneider, Benjamin & Vipond, Hillary, 2023. "The past and future of work: how history can inform the age of automation," Economic History Working Papers 119282, London School of Economics and Political Science, Department of Economic History.
    24. Atack, Jeremy & Margo, Robert A. & Rhode, Paul W., 2022. "Industrialization and urbanization in nineteenth century America," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    25. Lipowski, Cäcilia & Salomons, Anna & Zierahn-Weilage, Ulrich, 2024. "Expertise at work: New technologies, new skills, and worker impacts," ZEW Discussion Papers 24-044, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
    • N61 - Economic History - - Manufacturing and Construction - - - U.S.; Canada: Pre-1913

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