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Slow real wage growth during the industrial revolution: productivity paradox or pro-rich growth?

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journal contribution
posted on 2023-06-09, 23:04 authored by Nicholas Crafts
I examine the implications of technological change for productivity, real wages and factor shares during the industrial revolution using recently available data. This shows that real GDP per worker grew faster than real consumption earnings but labour’s share of national income changed little as real product wages grew at a similar rate to labour productivity in the medium term. The period saw modest total factor productivity growth which limited the growth both of real wages and of labour productivity. Economists looking for an historical example of rapid labour-saving technological progress having a seriously adverse impact on labour’s share must look elsewhere.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Oxford Economic Papers

ISSN

0030-7653

Publisher

Oxford University Press

Department affiliated with

  • Economics Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2021-02-15

First Open Access (FOA) Date

2023-02-21

First Compliant Deposit (FCD) Date

2021-02-15

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