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Labour market adjustment a hundred years ago: the case of the Catalan textile industry, 1880–19131

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  • JORDI DOMENECH

Abstract

This paper studies the way workers and firms behaved in a highly cyclical sector such as the Catalan cotton textile industry. Using firm level evidence from the late nineteenth and early twentieth centuries, the paper shows that, in spite of weak unionization and the lack of regional or local collective bargaining institutions, piece rates in cotton spinning and weaving were not subject to competitive rate cuts and remained fixed over the cycle. When facing a negative demand shock, firms adjusted by reducing output, hours of work, labour productivity, and employment. The paper finally evaluates the possible sources of wage rigidity in the industry.

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  • Jordi Domenech, 2008. "Labour market adjustment a hundred years ago: the case of the Catalan textile industry, 1880–19131," Economic History Review, Economic History Society, vol. 61(1), pages 1-25, February.
    • Handle: RePEc:bla:ehsrev:v:61:y:2008:i:1:p:1-25
    DOI: 10.1111/j.1468-0289.2007.00385.x
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    References listed on IDEAS

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    1. Huberman,Michael, 2010. "Escape from the Market," Cambridge Books, Cambridge University Press, number 9780521142663.
    2. Miller,Gary J., 1992. "Managerial Dilemmas," Cambridge Books, Cambridge University Press, number 9780521372817.
    3. Boyer,George R., 1990. "An Economic History of the English Poor Law, 1750–1850," Cambridge Books, Cambridge University Press, number 9780521364799.
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    Cited by:

    1. Theo Balderston, 2010. "The economics of abundance: coal and cotton in Lancashire and the world," Economic History Review, Economic History Society, vol. 63(3), pages 569-590, August.
    2. Domènech Feliu, Jordi & Miley, Thomas Jeffrey, 2013. "Structural change, collective action, and social unrest in 1930s Spain," IFCS - Working Papers in Economic History.WH wp13-05, Universidad Carlos III de Madrid. Instituto Figuerola.
    3. Bishnupriya Gupta, 2011. "Wages, unions, and labour productivity: evidence from Indian cotton mills," Economic History Review, Economic History Society, vol. 64, pages 76-98, February.
    4. Povilas Lastauskas, 2022. "Lockdown, employment adjustment, and financial frictions," Small Business Economics, Springer, vol. 58(2), pages 919-942, February.

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