56 Pages Posted: 17 Nov 2009
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.
Keywords: human capital, industrialization, Prussian economic history
JEL Classification: N13, N33, I20, O14
Suggested Citation: Suggested Citation
Becker, Sascha O. and Hornung, Erik and Woessmann, Ludger, Catch Me If You Can: Education and Catch-Up in the Industrial Revolution. IZA Discussion Paper No. 4556. Available at SSRN: https://ssrn.com/abstract=1506308