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Catch Me If You Can: Education and Catch-Up in the Industrial RevolutionSascha O. BeckerUniversity of Warwick; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA); Ifo Institute for Economic Research Erik HornungCESifo (Center for Economic Studies and Ifo Institute for Economic Research) - Department Human Capital and Innovation Ludger WoessmannIfo Institute for Economic Research; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); University of Munich - Ifo Institute for Economic Research IZA Discussion Paper No. 4556 Abstract: Existing evidence, mostly from British textile industries, rejects the importance of formal education for the Industrial Revolution. We provide new evidence from Prussia, a technological follower, where early-19th-century institutional reforms created the conditions to adopt the exogenously emerging new technologies. Our unique school-enrollment and factory-employment database links 334 counties from pre-industrial 1816 to two industrial phases in 1849 and 1882. Controlling extensively for pre-industrial development, we use pre-industrial education as an instrument to identify variation in later education that is exogenous to industrialization itself. We find that basic education significantly accelerated non-textile industrialization in both phases of the Industrial Revolution.
Number of Pages in PDF File: 56 Keywords: human capital, industrialization, Prussian economic history JEL Classification: N13, N33, I20, O14 working papers seriesDate posted: November 17, 2009Suggested CitationContact Information
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