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Human Capital and Technological Transition – Insights from the U.S.Navy

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  • Ahmed S. Rahman

    (United States Naval Academy)

Abstract

This paper explores the e ects of human capital on workers during the latter 19th century by examining the speci c case of the U.S. Navy. During this time, naval ocers belonged either to a regular or an engineer corps and had tasks assigned for their specialized training and experience. To test the e ects of specialized skills on career performance, we compile educational data from original-source Naval Academy records for the graduating classes of 1858 to 1905. We merge these with career data extracted from ocial Navy registers for the years 1859 to 1907. This compilation comprises one of the longest and earliest longitudinal records of labor market earnings, education and experience of which we are aware. Our results suggest that wage premia for \engineer-skilled" ocers rapidly deteriorated over their careers; more traditionally skilled ocers were better compensated and promoted more frequently as their careers progressed. This compelled those with engineering skills to leave the service early, contributing to the Navy's failure to keep up with the technological frontier of the time.

Suggested Citation

  • Ahmed S. Rahman, 2012. "Human Capital and Technological Transition – Insights from the U.S.Navy," Departmental Working Papers 34, United States Naval Academy Department of Economics.
    • Handle: RePEc:usn:usnawp:34
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    Cited by:

    1. Glaser, Darrell J. & Rahman, Ahmed S., 2023. "Between the dockyard and the deep blue sea—Retention and personnel economics in the Royal Navy," Labour Economics, Elsevier, vol. 84(C).
    2. Darrell J. Glaser & Ahmed S. Rahman, 2012. "Naval Engineering and Labor Specialization during the Industrial Revolution," Departmental Working Papers 38, United States Naval Academy Department of Economics.
    3. Ahmed S. Rahman, 2020. "Officer retention and military spending: the rise of the military‐industrial complex during the Second World War," Economic History Review, Economic History Society, vol. 73(4), pages 1074-1096, November.
    4. Darrell J. Glaser & Ahmed S. Rahman, 2017. "Development and Retention of Human Capital in Large Bureaucracies," Departmental Working Papers 60, United States Naval Academy Department of Economics.
    5. Scott M. Kaplan, 2024. "Leveling the playing field: The distributional impact of maximum‐ and minimum‐level contracts on player compensation," Contemporary Economic Policy, Western Economic Association International, vol. 42(2), pages 375-391, April.
    6. Hoffman, Ryan & Kambhampati, Ashwin & Kaplan, Scott, 2023. "Pay equality among heterogeneous agents," Economics Letters, Elsevier, vol. 229(C).
    7. Glaser, Darrell & Rahman, Ahmed, 2015. "Human Capital on the High Seas - Job Mobility and Returns to Technical Skill During Industrialization," MPRA Paper 68351, University Library of Munich, Germany.
    8. Glaser, Darrell J. & Rahman, Ahmed S., 2021. "Between the Dockyard and the Deep Blue Sea: Retention and Personnel Economics in the Royal Navy," IZA Discussion Papers 14037, Institute of Labor Economics (IZA).
    9. Darrell J. Glaser & Ahmed S. Rahman, 2012. "Technical Human Capital and Job Mobility in an Era of Rapid Technological Innovation," Departmental Working Papers 37, United States Naval Academy Department of Economics.

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