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Wages, Productivity, and Work Intensity in the Great Depression

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  • Julia Darby
  • Robert A. Hart

Abstract

We show that U.S. manufacturing wages during the Great Depression were importantly determined by forces on firms' intensive margins. Short‐run changes in work intensity and the longer‐term influence of potential productivity combined to influence real wage growth. By contrast, the external effects of unemployment and replacement rates had much less impact. Empirical work is undertaken against the background of a simple efficient bargaining model that embraces earnings, employment, hours of work, and work intensity.

Suggested Citation

  • Julia Darby & Robert A. Hart, 2008. "Wages, Productivity, and Work Intensity in the Great Depression," Southern Economic Journal, John Wiley & Sons, vol. 75(1), pages 91-103, July.
    • Handle: RePEc:wly:soecon:v:75:y:2008:i:1:p:91-103
    DOI: 10.1002/j.2325-8012.2008.tb00893.x
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    Cited by:

    1. Lyuboslav Kostov, 2020. "The impact of labor productivity on wages in the EU," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 146-158.

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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • N62 - Economic History - - Manufacturing and Construction - - - U.S.; Canada: 1913-

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