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Gains from factory electrification: Evidence from North Carolina, 1905–1926

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  • Damron, Will

Abstract

Between 1900 and 1930, the share of power in American manufacturing coming from electricity grew from 10% to 80%. Although electrification has been attributed with dramatic productivity gains, data limitations have constrained previous research to rely on aggregate data. Using a newly-collected dataset covering manufacturers in North Carolina in the early 1900s, I examine the effects of electrification at the establishment level. Manufacturers who electrified increased their productivity and output relative to manufacturers who did not. The effects on workers were mixed. While electrification increased average wages, it also increased the return to skill and reduced the labor share. Delays in electricity adoption point to the importance of complementary innovations in electricity transmission and financial markets.

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  • Damron, Will, 2025. "Gains from factory electrification: Evidence from North Carolina, 1905–1926," Explorations in Economic History, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:exehis:v:96:y:2025:i:c:s0014498325000014
    DOI: 10.1016/j.eeh.2025.101654
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    Keywords

    Electrification; Technological change;

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