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The Effect of Mechanisation on Labour: Evidence from the Diffusion of Steam

Author

Listed:
  • Ridolfi, Leonardo

    (University of Siena)

  • Salvo, Carla

    (Sapienza University of Rome)

  • Weisdorf, Jacob

    (Sapienza University of Rome, CAGE, & CEPR)

Abstract

We use the two earliest industrial censuses from 19th-century France to investigate the impact on industrial labour of one of the largest waves of mechanisation in history, the diffusion of steam power. We establish using OLS and IV analyses that wages and employment both grew significantly more among steam-adopting industries compared to their non-adopting peers. Growth in total revenue was also significantly higher among steam adopters while labour’s share did not change significantly compared to nonadopters. These findings dispute the common view that the historical modernisation of industry set labour back in absolute terms or relative to capitalists.

Suggested Citation

  • Ridolfi, Leonardo & Salvo, Carla & Weisdorf, Jacob, 2023. "The Effect of Mechanisation on Labour: Evidence from the Diffusion of Steam," CAGE Online Working Paper Series 689, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:689
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp689.2023.pdf
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    More about this item

    Keywords

    Capitalists; industrialisation; inequality; labour; mechanisation; productivity; technological progress; wages JEL Classification: I15; J42; J31; L92; O14; O33;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • 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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