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Labor Productivity during the Great Depression in UK Manufacturing

Author

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  • Hart, Robert A.

    (University of Stirling)

Abstract

This paper provides estimates of labor productivity for one-third of UK manufacturing during the Great Depression. It covers engineering and allied industries, and metal working industries. A unique data set of actual hours of work is combined with comparable real output and employment statistics. It establishes that output per worker-hour was countercyclical in the 1929-1932 peak-to-trough years of the Depression. This result has also been found for US manufacturing over the same period. Working time is found to play a crucial role the UK productivity response. Countercyclical productivity is discussed in terms of (i) the strong final output and consumer price deflations of 1929 to 1934, (ii) an absence of significant labor hoarding, and (c) diminishing returns to long weekly hours of work.

Suggested Citation

  • Hart, Robert A., 2019. "Labor Productivity during the Great Depression in UK Manufacturing," IZA Discussion Papers 12379, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12379
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    References listed on IDEAS

    as
    1. Bernanke, Ben S & Parkinson, Martin L, 1991. "Procyclical Labor Productivity and Competing Theories of the Business Cycle: Some Evidence from Interwar U.S. Manufacturing Industries," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 439-459, June.
    2. Collewet, Marion & Sauermann, Jan, 2017. "Working hours and productivity," Labour Economics, Elsevier, vol. 47(C), pages 96-106.
    3. Robert A. Hart & J. Elizabeth Roberts, 2013. "Real wage cyclicality and the Great Depression: evidence from British engineering and metal working firms," Oxford Economic Papers, Oxford University Press, vol. 65(2), pages 197-218, April.
    4. Hart, Robert A & Malley, James R, 1999. "Procyclical Labour Productivity: A Closer Look at a Stylized Fact," Economica, London School of Economics and Political Science, vol. 66(264), pages 533-550, November.
    5. Eric Wigham, 1973. "The Power to Manage," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-01264-0.
    6. Bordo, Michael D. & Evans, Charles L., 1995. "Labor productivity during the Great Depression," Economics Letters, Elsevier, vol. 47(1), pages 41-45, January.
    7. M. S. Feldstein, 1967. "Specification of the Labour Input in the Aggregate Production Function," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(4), pages 375-386.
    8. Barnett, Alina & Batten, Sandra & Chiu, Adrian & Franklin, Jeremy & Sebastia-Barriel, Maria, 2014. "The UK productivity puzzle," Bank of England Quarterly Bulletin, Bank of England, vol. 54(2), pages 114-128.
    9. John Pencavel, 2015. "The Productivity of Working Hours," Economic Journal, Royal Economic Society, vol. 125(589), pages 2052-2076, December.
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    Cited by:

    1. Robert A Hart, 2022. "Labour productivity during the Great Depression and the Great Recession in UK engineering and metal manufacture [The Productivity Puzzle: a Firm-level Investigation into Employment Behaviour and Re," Oxford Economic Papers, Oxford University Press, vol. 74(2), pages 431-452.

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    More about this item

    Keywords

    labor productivity; Great Depression; diminishing returns to hours;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • N64 - Economic History - - Manufacturing and Construction - - - Europe: 1913-

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