IDEAS home Printed from https://ideas.repec.org/p/jrp/jrpwrp/2018-008.html
   My bibliography  Save this paper

Technological change and labor market integration

Author

Listed:
  • Elisabeth Bublitz

    (University of Hamburg)

  • Michael Wyrwich

    (University of Jena)

Abstract

Could the industrialization reduce social inequalities? We use the rise of office employment in the early 20th century as a historical experiment to study the effect of technological change on labor market access for vulnerable groups. In regions with industries that were strongly connected to the modern office, we find a higher regional labor force participation of disabled people which is explained by better access to the job market for people with physical impairments due to the new office technology. The beneficial employment effect is not distributed equally across gender but is restricted to disabled men. The composition of the workforce in the new white-collar jobs shows no significant differences, implying that vulnerable groups benefitted in similar proportions to workers without health issues. In sum, the second industrialization started to lower labor market entry barriers which gives proof of a market-based leverage effect to foster social inclusiveness.

Suggested Citation

  • Elisabeth Bublitz & Michael Wyrwich, 2018. "Technological change and labor market integration," Jena Economics Research Papers 2018-008, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2018-008
    as

    Download full text from publisher

    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2018/wp_2018_008.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sascha O. Becker & Ludger Woessmann, 2009. "Was Weber Wrong? A Human Capital Theory of Protestant Economic History," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(2), pages 531-596.
    2. Mullen, Kathleen J. & Staubli, Stefan, 2016. "Disability benefit generosity and labor force withdrawal," Journal of Public Economics, Elsevier, vol. 143(C), pages 49-63.
    3. Dora L. Costa, 2000. "From Mill Town to Board Room: The Rise of Women's Paid Labor," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 101-122, Fall.
    4. Naude, Wim & Nagler, Paula, 2015. "Industrialisation, Innovation, Inclusion," MERIT Working Papers 2015-043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Claudia Goldin & Lawrence F. Katz, 1999. "Education and Income in the Early 20th Century: Evidence from the Prairies," NBER Working Papers 7217, National Bureau of Economic Research, Inc.
    6. Daron Acemoglu & Joshua D. Angrist, 2001. "Consequences of Employment Protection? The Case of the Americans with Disabilities Act," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 915-957, October.
    7. Stefan Bauernschuster & Anastasia Driva & Erik Hornung, 2020. "Bismarck’s Health Insurance and the Mortality Decline [Disease and Development: The Effect of Life Expectancy on Economic Growth]," Journal of the European Economic Association, European Economic Association, vol. 18(5), pages 2561-2607.
    8. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    9. Chen, Brian K. & Jalal, Hawre & Hashimoto, Hideki & Suen, Sze-chuan & Eggleston, Karen & Hurley, Michael & Schoemaker, Lena & Bhattacharya, Jay, 2016. "Forecasting trends in disability in a super-aging society: Adapting the Future Elderly Model to Japan," The Journal of the Economics of Ageing, Elsevier, vol. 8(C), pages 42-51.
    10. Hill, Matthew J. & Maestas, Nicole & Mullen, Kathleen J., 2016. "Employer accommodation and labor supply of disabled workers," Labour Economics, Elsevier, vol. 41(C), pages 291-303.
    11. Courtney Coile & Kevin Milligan & David A. Wise, 2014. "Introduction to "Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement"," NBER Chapters, in: Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement, pages 1-44, National Bureau of Economic Research, Inc.
    12. Becker, Sascha O. & Woessmann, Ludger, 2008. "Luther and the Girls: Religious Denomination and the Female Education Gap in 19th Century Prussia," IZA Discussion Papers 3837, Institute of Labor Economics (IZA).
    13. Sascha O. Becker & Erik Hornung & Ludger Woessmann, 2011. "Education and Catch-Up in the Industrial Revolution," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(3), pages 92-126, July.
    14. Maki, Dennis R, 1993. "The Economic Implications of Disability Insurance in Canada," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 148-169, January.
    15. Peter H. Lindert & Jeffrey G. Williamson, 2016. "Unequal Gains: American Growth and Inequality since 1700," Economics Books, Princeton University Press, edition 1, number 10670.
    16. Goldin, Claudia & Katz, Lawrence F., 2000. "Education and Income in the Early Twentieth Century: Evidence from the Prairies," The Journal of Economic History, Cambridge University Press, vol. 60(3), pages 782-818, September.
    17. Courtney Coile & Kevin S. Milligan & David A. Wise, 2014. "Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement - Introduction and Summary," NBER Working Papers 20120, National Bureau of Economic Research, Inc.
    18. James Banks & Richard Blundell & Carl Emmerson, 2015. "Disability Benefit Receipt and Reform: Reconciling Trends in the United Kingdom," Journal of Economic Perspectives, American Economic Association, vol. 29(2), pages 173-190, Spring.
    19. Lindert, Peter H., 2000. "Three centuries of inequality in Britain and America," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 3, pages 167-216, Elsevier.
    20. Guinnane, Timothy W. & Streb, Jochen, 2011. "Moral Hazard in a Mutual Health Insurance System: German Knappschaften, 1867–1914," The Journal of Economic History, Cambridge University Press, vol. 71(1), pages 70-104, March.
    21. Lex Borghans & Anne C. Gielen & Erzo F. P. Luttmer, 2014. "Social Support Substitution and the Earnings Rebound: Evidence from a Regression Discontinuity in Disability Insurance Reform," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 34-70, November.
    22. Mara P. Squicciarini & Nico Voigtländer, 2015. "Human Capital and Industrialization: Evidence from the Age of Enlightenment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(4), pages 1825-1883.
    23. Chiara Mussida & Dario Sciulli, 2016. "Disability and employment across Central and Eastern European Countries," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-24, December.
    24. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    25. Naudé, Wim & Nagler, Paula, 2017. "Technological Innovation and Inclusive Growth in Germany," IZA Discussion Papers 11194, Institute of Labor Economics (IZA).
    26. Robert Fenge & Beatrice Scheubel, 2013. "Pensions and Fertility: Back to the Roots - The Introduction of Bismarck's Pension Scheme and the European Fertility Decline," CESifo Working Paper Series 4383, CESifo.
    27. Melanie Jones, 2016. "Disability and labor market outcomes," IZA World of Labor, Institute of Labor Economics (IZA), pages 253-253, April.
    28. Rotella, Elyce J., 1981. "The Transformation of the American Office: Changes in Employment and Technology," The Journal of Economic History, Cambridge University Press, vol. 41(1), pages 51-57, March.
    29. Hoffman, Philip T. & Jacks, David S. & Levin, Patricia A. & Lindert, Peter H., 2002. "Real Inequality In Europe Since 1500," The Journal of Economic History, Cambridge University Press, vol. 62(2), pages 322-355, June.
    30. Sascha O. Becker & Ludger Woessmann, 2008. "Luther and the Girls: Religious Denomination and the Female Education Gap in Nineteenth‐century Prussia," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(4), pages 777-805, December.
    31. Atack, Jeremy, 1985. "Industrial structure and the emergence of the modern industrial corporation," Explorations in Economic History, Elsevier, vol. 22(1), pages 29-52, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ralph Hippe & Roger Fouquet, 2024. "The Human Capital Transition and the Role of Policy," Springer Books, in: Claude Diebolt & Michael Haupert (ed.), Handbook of Cliometrics, edition 3, pages 411-457, Springer.
    2. Méon, Pierre-Guillaume & Tojerow, Ilan, 2019. "The minority ethic: Rethinking religious denominations, minority status, and educational achievement across the globe," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 196-214.
    3. Pierre-Guillaume Méon & Ilan Tojerow, 2018. "In God We Learn? The Universal Messages of Religions, their Context-Specific Effects, and the role of Minority Status," Working Papers CEB 16-036, ULB -- Universite Libre de Bruxelles.
    4. Mathias Bühler & Leonhard Vollmer & Johannes Wimmer, 2024. "Female education and social change," Journal of Economic Growth, Springer, vol. 29(1), pages 79-119, March.
    5. Sascha O. Becker & Francesco Cinnirella & Erik Hornung & Ludger Woessmann, 2014. "iPEHD--The ifo Prussian Economic History Database," Historical Methods: A Journal of Quantitative and Interdisciplinary History, Taylor & Francis Journals, vol. 47(2), pages 57-66, June.
    6. Sascha O. Becker & Francesco Cinnirella & Ludger Woessmann, 2012. "The effect of investment in children’s education on fertility in 1816 Prussia," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(1), pages 29-44, January.
    7. Hamish Low & Luigi Pistaferri, 2020. "Disability Insurance: Theoretical Trade‐Offs and Empirical Evidence," Fiscal Studies, John Wiley & Sons, vol. 41(1), pages 129-164, March.
    8. Izumi, Yutaro & Park, Sangyoon & Yang, Hyunjoo, 2023. "The effects of South Korean Protestantism on human capital and female empowerment, 1930–2010," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 422-438.
    9. Cinnirella, Francesco & Hornung, Erik, 2016. "Landownership concentration and the expansion of education," Journal of Development Economics, Elsevier, vol. 121(C), pages 135-152.
    10. Cheng, Cheng & Wang, Xiaobing, 2021. "Transportation cost reducing technological change and wages inequalities," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 600-611.
    11. Alexandra Semrad, 2015. "Modern secondary education and economic performance: the introduction of the Gewerbeschule and Realschule in nineteenth-century Bavaria," Economic History Review, Economic History Society, vol. 68(4), pages 1306-1338, November.
    12. Timothy W. Guinnane & Jochen Streb, 2021. "The Introduction of Bismarck's Social Security System and its Effects on Marriage and Fertility in Prussia," Population and Development Review, The Population Council, Inc., vol. 47(3), pages 749-780, September.
    13. Sascha O. Becker & Lukas Mergele & Ludger Woessmann, 2020. "The Separation and Reunification of Germany: Rethinking a Natural Experiment Interpretation of the Enduring Effects of Communism," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 143-171, Spring.
    14. Nicholas Bloom & Tarek Alexander Hassan & Aakash Kalyani & Josh Lerner & Ahmed Tahoun, 2021. "The diffusion of disruptive technologies," CEP Discussion Papers dp1798, Centre for Economic Performance, LSE.
    15. Chaudhary, Latika & Rubin, Jared, 2011. "Reading, writing, and religion: Institutions and human capital formation," Journal of Comparative Economics, Elsevier, vol. 39(1), pages 17-33, March.
    16. Quamrul H. Ashraf & Francesco Cinnirella & Oded Galor & Boris Gershman & Erik Hornung, 2017. "Capital-Skill Complementarity and the Emergence of Labor Emancipation," Working Papers 2017-1, Brown University, Department of Economics.
    17. Sascha Becker & Francesco Cinnirella & Ludger Woessmann, 2010. "The trade-off between fertility and education: evidence from before the demographic transition," Journal of Economic Growth, Springer, vol. 15(3), pages 177-204, September.
    18. Pritha Dev & Blessing U. Mberu & Roland Pongou, 2016. "Ethnic Inequality: Theory and Evidence from Formal Education in Nigeria," Economic Development and Cultural Change, University of Chicago Press, vol. 64(4), pages 603-660.
    19. Valencia Caicedo, Felipe & Dohmen, Thomas & Pondorfer, Andreas, 2023. "Religion and cooperation across the globe," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 479-489.
    20. Timothy W. Guinnane, 2011. "The Historical Fertility Transition: A Guide for Economists," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 589-614, September.

    More about this item

    Keywords

    Technological change; labor demand; disability; social inequality;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2018-008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Markus Pasche (email available below). General contact details of provider: http://www.jenecon.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.