The Effects of Worker Displacement During the Industrial Revolution: Evidence from Sweden

Abstract

We study the consequences of worker displacement during the second industrial revolution using linked census data combined with novel archival data on the 19th-century Swedish iron industry. Ironworkers  displaced by the industrial transformation exited the iron industry at higher rates, were more likely to migrate internally, and ended up in occupations that paid around 10\% less than non-displaced workers. Regional migration appears to play an important role in mitigating the impact of worker displacement. To our knowledge, this paper is the first to quantify the effects of worker displacement during the second industrial revolution in Europe.

Keywords: Worker displacement, Industrialization, Technological change

JEL Classification: J65; O14; R11