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Effects of Electrification on the Production and Distribution in the Coal Industry: Evidence from 1900s Japan

Author

Listed:
  • Morimoto, Mayo

    (Institute of Social Science, The University of Tokyo)

Abstract

This paper studies how electrification affected the economic performance and industrial relations of the Japanese coal mining industry in the 1900s. We find that electrification considerably improved productivity and increased the number of workers, but had statistically zero effects on miners’ wages and significantly declined the labor income share, using difference-in-differences estimation. We explain this phenomenon by using the “superstar firm†hypothesis, which provides a consistent explanation of the recent declines in labor income share in the US economy.

Suggested Citation

  • Morimoto, Mayo, 2019. "Effects of Electrification on the Production and Distribution in the Coal Industry: Evidence from 1900s Japan," ISS Discussion Paper Series (series F) f191, Institute of Social Science, The University of Tokyo.
    • Handle: RePEc:itk:issdps:f191
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    File URL: https://jww.iss.u-tokyo.ac.jp/publishments/dp/dpf/pdf/f-191.pdf
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    More about this item

    Keywords

    Electrification; labor income share; productivity; industrial revolution; technological change; coal mining.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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