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Education and catch-up in the industrial revolution

Author

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  • Becker, Sascha O.
  • Hornung, Erik
  • Wößmann, Ludger

Abstract

Research increasingly stresses the role of human capital in modern economic development. Existing historical evidence-mostly from British textile industries-however, rejects that formal education was important for the Industrial Revolution. Our new evidence from technological follower Prussia uses a unique school enrollment and factory employment database linking 334 counties from pre-industrial 1816 to two industrial phases in 1849 and 1882. Using pre-industrial education as instrument for later education and controlling extensively for pre-industrial development, we find that basic education is significantly associated with nontextile industrialization in both phases of the Industrial Revolution. Panel data models with county fixed effects confirm the results.

Suggested Citation

  • Becker, Sascha O. & Hornung, Erik & Wößmann, Ludger, 2011. "Education and catch-up in the industrial revolution," Munich Reprints in Economics 20261, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:20261
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    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • N63 - Economic History - - Manufacturing and Construction - - - Europe: Pre-1913

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