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Market Forces Shaping Human Capital In Eighteenth Century London

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  • Moshe Justman

    (BGU)

  • Karine van der Beck

    (BGU)

Abstract

We draw on quantitative and descriptive data from Robert Campbell’s widely cited manual for prospective apprentices, The London Tradesman (1747), to demonstrate the responsiveness of apprenticeship in mid-eighteenth century London to market forces of supply and demand. We regress apprenticeship premiums on journeymen’s wages, set up costs and a selection of employment conditions and requirements across 178 trades, and find a significant elasticity of 0.4 with respect to wages and 0.25 with respect to set-up costs. We interpret this as supporting an economic model that views premiums as bounded from above by the expected benefits of acquiring the skills of the trade (Lane, 1996); bounded from below by the expected net training costs to the master, taking into account the possibility of the apprentice terminating his service prematurely (Wallis, 2008); and reflecting the relative bargaining power of master and parent. This supports the thesis that apprenticeship played an important role in adapting the English workforce to the skill requirements of the Industrial Revolution.

Suggested Citation

  • Moshe Justman & Karine van der Beck, 2013. "Market Forces Shaping Human Capital In Eighteenth Century London," Working Papers 1317, Ben-Gurion University of the Negev, Department of Economics.
    • Handle: RePEc:bgu:wpaper:1317
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    References listed on IDEAS

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    1. Gregory Clark, 2005. "The Condition of the Working Class in England, 1209-2004," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1307-1340, December.
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    Cited by:

    1. Karine van der Beek, "undated". "England's Eighteenth Century Demand for High-Quality Workmanship: Evidence from Apprenticeship, 1710-1770," Working Papers 2013-015, Human Capital and Economic Opportunity Working Group.
    2. Feldman, Naomi E. & van der Beek, Karine, 2016. "Skill choice and skill complementarity in eighteenth century England," Explorations in Economic History, Elsevier, vol. 59(C), pages 94-113.
    3. repec:grz:wpsses:2017-02 is not listed on IDEAS

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    More about this item

    JEL classification:

    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913

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