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Human Capital and Industrialization: German Settlers in Late Imperial Russia

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  • Viktor Malein

    (University of Southern Denmark)

Abstract

Between 1890 and 1913, Russian Empire experienced a rapid transition to an industrial economy, catching up with Western countries. Using accidental elements in German settlement locations in Russia 1763-1861, the paper estimates the effects of the more educated Germans in Russia’s industrial transition in 1890-1913. I demonstrate that German settlers had significant external benefits in their regions through improved schooling infrastructure and increased literacy among the local population. Educational benefits translated into a higher share of industrial occupations, per-capita local expenditures and urbanization by 1897. I also find a positive impact of education on productivity, mainly in industries that experienced technological transformation and had higher human capital requirements. Furthermore, panel estimates reveal that German areas experienced a higher industrial growth only after 1890 with the adaption of more progressive technologies. Finally, I find no evidence supporting alternative explanations of the German impact: increased agricultural productivity, lower exposure to serfdom, demographic transition or changes in landownership structure.

Suggested Citation

  • Viktor Malein, 2021. "Human Capital and Industrialization: German Settlers in Late Imperial Russia," Working Papers 0221, European Historical Economics Society (EHES).
    • Handle: RePEc:hes:wpaper:0221
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    File URL: https://www.ehes.org/wp/EHES_221.pdf
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    Cited by:

    1. Ekaterina Zhuravskaya & Sergei Guriev & Andrei Markevich, 2024. "New Russian Economic History," Journal of Economic Literature, American Economic Association, vol. 62(1), pages 47-114, March.

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    More about this item

    Keywords

    Human capital; Russian economic history; Industrialization;
    All these keywords.

    JEL classification:

    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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