Considering the counterfactual: Real wages in the First Industrial Revolution

Nicholas Crafts and Terence C. Mills
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Terence C. Mills: Loughborough University

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: We investigate a structural model of demographic-economic interactions for England during 1570 to 1850. We estimate that the annual rate of population growth consistent with constant real wages was 0.4 per cent before 1760 but 1.5 per cent thereafter. We find that exogenous shocks increased population growth dramatically in the early decades of the Industrial Revolution. Simulations of our model show that if these demographic shocks had occurred before the Industrial Revolution the impact on real wages would have been catastrophic and that these shocks were largely responsible for very slow growth of real wages during the Industrial Revolution.

Keywords: epidemic disease; Industrial Revolution; Malthusian checks; nuptiality; population growth; real wages; technological progress. JEL Classification: N13; N33 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-evo, nep-gro and nep-his
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Citations: View citations in EconPapers (2)

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Journal Article: Considering the Counterfactual: Real Wages in the First Industrial Revolution (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:cge:wacage:502

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