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Human Capital Formation during the First Industrial Revolution: Evidence from the Use of Steam Engines

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  • de Pleijt, Alexandra
  • Nuvolari, Alessandro
  • Weisdorf, Jacob

Abstract

We examine the effect of technical change on human capital formation during England's Industrial Revolution. Using the number of steam engines installed by 1800 as a synthetic indicator of technological change, and occupational statistics to measure working skills (using HISCLASS), we establish a positive correlation between the use of steam engines and the share of skilled workers at the county level. We use exogenous variation in carboniferous rock strata (containing coal to fuel the engines) to show that the effect was causal. While technological change stimulated the formation of working skills, it had an overall negative effect on the formation of primary education, captured by literacy and school enrolment rates. It also led to higher gender inequality in literacy.

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  • de Pleijt, Alexandra & Nuvolari, Alessandro & Weisdorf, Jacob, 2018. "Human Capital Formation during the First Industrial Revolution: Evidence from the Use of Steam Engines," CEPR Discussion Papers 12987, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:12987
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    More about this item

    Keywords

    Economic Growth; education; Human Capital; Industrialisation; Steam Engines; Technological change;
    All these keywords.

    JEL classification:

    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • 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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