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The shadow of slavery on industrial innovation: Evidence from the US South

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  • Jung, Yeonha
  • Yoon, Chungeun

Abstract

The abolition of American slavery was a profound shock to the southern economy, but little is known about its effect on industrial innovation. This study hypothesizes that historical slave concentration was followed by a slowdown in industrial innovation after the Civil War, due to technical change biased toward unskilled labor. Moreover, given the shifts in labor market conditions in the postbellum South, we propose that this relationship became evident after Reconstruction. County-level evidence supports this hypothesis; counties where slavery was more prevalent in 1860 experienced a relative decline in manufacturing patents in the post-Reconstruction period. The role of technical change as a mechanism is supported in two dimensions. First, the reduction in innovation was more pronounced in low-skill industries, which were better suited to unskill-biased technical change. Second, the return to literacy in the industrial sector decreased with the historical prevalence of slavery, a finding that suggests a decline in skill demand.

Suggested Citation

  • Jung, Yeonha & Yoon, Chungeun, 2025. "The shadow of slavery on industrial innovation: Evidence from the US South," Journal of Comparative Economics, Elsevier, vol. 53(2), pages 511-533.
    • Handle: RePEc:eee:jcecon:v:53:y:2025:i:2:p:511-533
    DOI: 10.1016/j.jce.2025.03.003
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    Keywords

    Slavery; Innovation; Reconstruction; Endogenous technical change;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • N41 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: Pre-1913
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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