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Skilled and unskilled wage differentials and economic integration, 1870–1930

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  • BETRÁN, CONCHA
  • PONS, MARIA A.

Abstract

In this article we analyse the differences between the wages of skilled and unskilled workers in the period 1870–1930 for five countries with different levels of development and economic integration: the USA, France, the UK, Italy and Spain. We have constructed a ratio of skilled to unskilled wages (the skill premium) in the industrial sector for all these countries with the exception of the USA, for which data were already available. We study the impact of globalisation, technological and structural change and labour movements on the skill premium growth rate. The main conclusion we obtain is that the globalisation variables (migration and trade) explain only part of this growth. Technological and structural change also had an impact on the skill premium growth rate. The main responses of governments to globalisation were trade and migration policies. But as trade and migration were and are not the only sources of inequality growth, other policies had and have to be implemented.

Suggested Citation

  • Betrán, Concha & Pons, Maria A., 2004. "Skilled and unskilled wage differentials and economic integration, 1870–1930," European Review of Economic History, Cambridge University Press, vol. 8(1), pages 29-60, April.
    • Handle: RePEc:cup:ereveh:v:8:y:2004:i:01:p:29-60_00
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    Cited by:

    1. Matteo Gomellini & Cormac Ó Gráda, 2011. "Outward and Inward Migrations in Italy: A Historical Perspective," Quaderni di storia economica (Economic History Working Papers) 08, Bank of Italy, Economic Research and International Relations Area.
    2. Ojala, Jari & Pehkonen, Jaakko & Eloranta, Jari, 2016. "Deskilling and decline in skill premium during the age of sail: Swedish and Finnish seamen, 1751–1913," Explorations in Economic History, Elsevier, vol. 61(C), pages 85-94.
    3. Jeffrey G. Williamson, 2006. "Inequality and Schooling Responses to Globalization Forces: Lessons from History," NBER Working Papers 12553, National Bureau of Economic Research, Inc.
    4. Zachary Ward, 2015. "The U-Shaped Self-Selection of Return Migrants," CEH Discussion Papers 035, Centre for Economic History, Research School of Economics, Australian National University.
    5. Ewout Frankema & Marlous van Waijenburg, 2023. "What about the race between education and technology in the Global South? Comparing skill premiums in colonial Africa and Asia," Economic History Review, Economic History Society, vol. 76(3), pages 941-978, August.
    6. Matteo Gomellini & Cormac Ó Gráda, 2019. "Brain Drain and Brain Gain in Italy and Ireland in the Age of Mass Migration," Palgrave Studies in Economic History, in: David Mitch & Gabriele Cappelli (ed.), Globalization and the Rise of Mass Education, chapter 0, pages 163-191, Palgrave Macmillan.
    7. Timothy J. Hatton & Zachary Ward, 2024. "International Migration in the Atlantic Economy 1850–1940," Springer Books, in: Claude Diebolt & Michael Haupert (ed.), Handbook of Cliometrics, edition 3, pages 507-535, Springer.
    8. Giovanni Federico & Alessandro Nuvolari & Leonardo Ridolfi & Michelangelo Vasta, 2021. "The race between the snail and the tortoise: skill premium and early industrialization in Italy (1861–1913)," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 15(1), pages 1-42, January.
    9. repec:bdi:workqs:qse_8 is not listed on IDEAS
    10. Ferrie, Joseph & Hatton, Timothy J., 2013. "Two Centuries of International Migration," IZA Discussion Papers 7866, Institute of Labor Economics (IZA).
    11. Larsson, Svante, 2005. "Globalisation, inequality and Swedish catch up in the late nineteenth century. Williamson’s real wage comparisons under scrutiny," Göteborg Papers in Economic History 2, University of Gothenburg, Unit for Economic History.
    12. Spitzer, Yannay & Zimran, Ariell, 2018. "Migrant self-selection: Anthropometric evidence from the mass migration of Italians to the United States, 1907–1925," Journal of Development Economics, Elsevier, vol. 134(C), pages 226-247.
    13. Francesco Giffoni & Matteo Gomellini, 2015. "Brain Gain in the Age of Mass Migration," Quaderni di storia economica (Economic History Working Papers) 34, Bank of Italy, Economic Research and International Relations Area.
    14. Jeffrey G. Williamson, 2006. "Inequality and schooling responses to globalization forces: lessons from history," Proceedings, Federal Reserve Bank of Dallas, pages 225-248.

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