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The Complementary between Technology and Human Capital in the Early Phase of Industrialization

58 Pages Posted: 22 Sep 2015  

Raphael Franck

Hebrew University of Jerusalem - Department of Economics

Oded Galor

Brown University - Department of Economics; Centre for Economic Policy Research (CEPR)

Date Written: August 21, 2015

Abstract

The research explores the effect of industrialization on human capital formation. Exploiting exogenous regional variations in the adoption of steam engines across France, the study establishes that in contrast to conventional wisdom that views early industrialization as a predominantly deskilling process, the industrial revolution was conducive for human capital formation, generating broad increases in literacy rates and education attainment.

Keywords: capital-skill complementarity, economic growth, industrialization, human capital, steam engine

JEL Classification: N330, N340, O140, O330

Suggested Citation

Franck, Raphael and Galor, Oded, The Complementary between Technology and Human Capital in the Early Phase of Industrialization (August 21, 2015). CESifo Working Paper Series No. 5485. Available at SSRN: https://ssrn.com/abstract=2663326

Raphael Franck

Hebrew University of Jerusalem - Department of Economics ( email )

Mount Scopus
Jerusalem, 91905
Israel

Oded Galor (Contact Author)

Brown University - Department of Economics ( email )

Providence, RI 02912
United States

HOME PAGE: http://www.econ.brown.edu/fac/Oded_Galor/

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

HOME PAGE: http://www.econ.brown.edu/fac/Oded_Galor/

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