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Education and Catch-Up in the Industrial Revolution

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  • Sascha O. Becker
  • Erik Hornung
  • Ludger Woessmann

Abstract

Research increasingly stresses the role of human capital in modern economic development. Existing historical evidence -- mostly from British textile industries -- however, rejects that formal education was important for the Industrial Revolution. Our new evidence from technological follower Prussia uses a unique school enrollment and factory employment database linking 334 counties from pre-industrial 1816 to two industrial phases in 1849 and 1882. Using pre-industrial education as instrument for later education and controlling extensively for pre-industrial development, we find that basic education is significantly associated with nontextile industrialization in both phases of the Industrial Revolution. Panel data models with county fixed effects confirm the results. (JEL I20, J24, N13, N33, N63)

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Journal: Macroeconomics.

Volume (Year): 3 (2011)
Issue (Month): 3 (July)
Pages: 92-126

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Handle: RePEc:aea:aejmac:v:3:y:2011:i:3:p:92-126

Note: DOI: 10.1257/mac.3.3.92
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References

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  1. Eric A. Hanushek & Ludger Woessmann, 2009. "Do Better Schools Lead to More Growth? Cognitive Skills, Economic Outcomes, and Causation," NBER Working Papers 14633, National Bureau of Economic Research, Inc.
  2. Gregory Clark, 2005. "The Condition of the Working-Class in England, 1209-2004," Working Papers 539, University of California, Davis, Department of Economics.
  3. Oded Galor, 2004. "From Stagnation to Growth: Unified Growth Theory," GE, Growth, Math methods 0409003, EconWPA.
  4. Oded Galor & Omer Moav, 2000. "Das Human Kapital," Working Papers 2000-17, Brown University, Department of Economics.
  5. Benhabib, Jess & Spiegel, Mark M., 2005. "Human Capital and Technology Diffusion," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 13, pages 935-966 Elsevier.
  6. Easterlin, Richard A., 1981. "Why Isn't the Whole World Developed?," The Journal of Economic History, Cambridge University Press, vol. 41(01), pages 1-17, March.
  7. Nico Voigtländer & Hans-Joachim Voth, 2006. "Why England? Demographic factors, structural change and physical capital accumulation during the Industrial Revolution," DEGIT Conference Papers c011_003, DEGIT, Dynamics, Economic Growth, and International Trade.
  8. Becker, Sascha & Francesco, Cinirella & Woessmann, Ludger, 2009. "The Trade-off between Fertility and Education: Evidence from before the Demographic Transition," Stirling Economics Discussion Papers 2009-17, University of Stirling, Division of Economics.
  9. repec:bla:restud:v:73:y:2006:i:1:p:85-117 is not listed on IDEAS
  10. Sandberg, Lars G., 1979. "The Case of the Impoverished Sophisticate: Human Capital and Swedish Economic Growth before World War I," The Journal of Economic History, Cambridge University Press, vol. 39(01), pages 225-241, March.
  11. Bessen, James, 2003. "Technology and Learning by Factory Workers: The Stretch-Out at Lowell, 1842," The Journal of Economic History, Cambridge University Press, vol. 63(01), pages 33-64, March.
  12. Kindleberger, Charles P, 1995. "Technological Diffusion: European Experience to 1850," Journal of Evolutionary Economics, Springer, vol. 5(3), pages 229-42, September.
  13. repec:bla:restud:v:76:y:2009:i:1:p:143-179 is not listed on IDEAS
  14. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June.
  15. Ros s, Joan R., 1998. "Measuring the contribution of human capital to the development of the Catalan factory system (1830 61)," European Review of Economic History, Cambridge University Press, vol. 2(01), pages 25-48, April.
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Citations

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Cited by:
  1. Charlotte Le Chapelain, 2013. "Cliométrie et Capital humain," Working Papers 01-13, Association Française de Cliométrie (AFC).
  2. Becker, Sascha O. & Egger, Peter & von Ehrlich, Maximilian, 2011. "Absorptive Capacity and the Growth Effects of Regional Transfers: A Regression Discontinuity Design with Heterogeneous Treatment Effects," CEPR Discussion Papers 8474, C.E.P.R. Discussion Papers.
  3. Francesco Cinnirella & Erik Hornung, 2011. "Landownership Concentration and the Expansion of Education," Working Papers 0010, European Historical Economics Society (EHES).
  4. Jain, Tarun, 2011. "Common tongue: The impact of language on economic performance," MPRA Paper 34423, University Library of Munich, Germany.
  5. Becker, Sascha O. & Cinnirella, Francesco & Hornung, Erik & Woessmann, Ludger, 2012. "iPEHD: The ifo Prussian Economic History Database," IZA Discussion Papers 6829, Institute for the Study of Labor (IZA).
  6. Emanuele Felice, 2012. "Regional convergence in Italy, 1891–2001: testing human and social capital," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(3), pages 267-306, October.
  7. Galor, Oded, 2012. "Inequality, Human Capital Formation and the Process of Development," IZA Discussion Papers 6328, Institute for the Study of Labor (IZA).
  8. Erik Hornung, 2011. "Immigration and the Diffusion of Technology: The Huguenot Diaspora in Prussia," Ifo Working Paper Series Ifo Working Paper No. 114, Ifo Institute for Economic Research at the University of Munich.
  9. Cantoni, Davide, 2013. "The Economic Effects of the Protestant Reformation: Testing the Weber Hypothesis in the German Lands," Discussion Papers in Economics 14811, University of Munich, Department of Economics.
  10. Becker, Sascha O & Egger, Peter H & Von Ehrlich, Maximilian, 2012. "Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: Regression Discontinuity Design with Heterogeneous Treatment Effects," CAGE Online Working Paper Series 88, Competitive Advantage in the Global Economy (CAGE).
  11. Ludger Wößmann, 2011. "Die Bedeutung von Bildung für die Wirtschaftsentwicklung: Eine neue wirtschaftshistorische Forschungsagenda anhand preußischer Kreisdaten, Teil 2," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 64(01), pages 41-47, 01.
  12. Sascha O. Becker & Francesco Cinnirella & Ludger Woessmann, 2012. "The effect of investment in children’s education on fertility in 1816 Prussia," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(1), pages 29-44, January.
  13. Ludger Wößmann, 2010. "Die Bedeutung von Religion für die Bildung: Eine wirtschaftshistorische Forschungsagenda anhand preußischer Kreisdaten, Teil 1," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 63(23), pages 25-32, December.

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