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The Complementary between Technology and Human Capital in the Early Phase of Industrialization

Author

Listed:
  • Raphaël Franck
  • Oded Galor

Abstract

The research explores the effect of industrialization on human capital formation. Exploiting exogenous regional variations in the adoption of steam engines across France, the study establishes that in contrast to conventional wisdom that views early industrialization as a predominantly deskilling process, the industrial revolution was conducive for human capital formation, generating broad increases in literacy rates and education attainment.

Suggested Citation

  • Raphaël Franck & Oded Galor, 2015. "The Complementary between Technology and Human Capital in the Early Phase of Industrialization," CESifo Working Paper Series 5485, CESifo.
    • Handle: RePEc:ces:ceswps:_5485
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp5485.pdf
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    References listed on IDEAS

    as
    1. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January.
    2. Oded Galor & Omer Moav, 2002. "Natural Selection and the Origin of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1133-1191.
    3. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    4. Oded Galor, 2011. "Unified Growth Theory and Comparative Development," Rivista di Politica Economica, SIPI Spa, issue 2, pages 9-21, April-Jun.
    5. Mara P. Squicciarini & Nico Voigtländer, 2015. "Human Capital and Industrialization: Evidence from the Age of Enlightenment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(4), pages 1825-1883.
    6. Claude Diebolt & Magali Jaoul & Gilles San Martino, 2005. "Le mythe de Ferry une analyse cliométrique," Revue d'économie politique, Dalloz, vol. 115(4), pages 471-497.
    7. Grantham, George, 1997. "The French cliometric revolution: A survey of cliometric contributions to French economic history," European Review of Economic History, Cambridge University Press, vol. 1(3), pages 353-405, December.
    8. Oded Galor & Andrew Mountford, 2008. "Trading Population for Productivity: Theory and Evidence," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(4), pages 1143-1179.
    9. Nathan Rosenberg & Manuel Trajtenberg, 2009. "A General-Purpose Technology at Work: The Corliss Steam Engine in the Late-Nineteenth-Century United States," World Scientific Book Chapters, in: Nathan Rosenberg (ed.), Studies On Science And The Innovation Process Selected Works of Nathan Rosenberg, chapter 6, pages 97-135, World Scientific Publishing Co. Pte. Ltd..
    10. Oded Galor, 2011. "Unified Growth Theory," Economics Books, Princeton University Press, edition 1, number 9477.
    11. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
    12. Atack, Jeremy, 1979. "Fact in fiction? The relative costs of steam and water power: a simulation approach," Explorations in Economic History, Elsevier, vol. 16(4), pages 409-437, October.
    13. repec:hal:wpspec:info:hdl:2441/b0ghejdpldro9c499h4ajc937 is not listed on IDEAS
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Does Technological Progress Lead to more Human Capital Formation? Evidence from the French Industrial Revolution
      by nmpostelvinay in NEP-HIS blog on 2015-05-19 21:20:17

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    Cited by:

    1. Saul Mendoza-Palacios & Julen Berasaluce & Alfonso Mercado, 2022. "On Industrialization, Human Resources Training, and Policy Coordination," Journal of Industry, Competition and Trade, Springer, vol. 22(2), pages 179-206, June.
    2. Ager, Philipp & Brueckner, Markus & Herz, Benedikt, 2017. "Structural Change and the Fertility Transition in the American South," Discussion Papers on Economics 6/2017, University of Southern Denmark, Department of Economics.
    3. Alexandra de Pleijt & Alessandro Nuvolari & Jacob Weisdorf, 2020. "Human Capital Formation During the First Industrial Revolution: Evidence from the use of Steam Engines," Journal of the European Economic Association, European Economic Association, vol. 18(2), pages 829-889.
    4. Mario F Carillo, 2021. "Agricultural Policy and Long-Run Development: Evidence from Mussolini's Battle for Grain," The Economic Journal, Royal Economic Society, vol. 131(634), pages 566-597.
    5. William F. Maloney & Felipe Valencia Caicedo, 2017. "Engineering Growth: Innovative Capacity and Development in the Americas," CESifo Working Paper Series 6339, CESifo.
    6. Èric Gómez-i-Aznar, 2019. "Human capital at the beginnings of the 18th century Catalonia: age-heaping and numeracy in a changing economy," Documentos de Trabajo (DT-AEHE) 1904, Asociación Española de Historia Económica.

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    More about this item

    Keywords

    capital-skill complementarity; economic growth; industrialization; human capital; steam engine;
    All these keywords.

    JEL classification:

    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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