Human Capital and Industrialization: German Settlers in Late Imperial Russia

Viktor Malein
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Viktor Malein: University of Southern Denmark

No 221, Working Papers from European Historical Economics Society (EHES)

Abstract: Between 1890 and 1913, Russian Empire experienced a rapid transition to an industrial economy, catching up with Western countries. Using accidental elements in German settlement locations in Russia 1763-1861, the paper estimates the effects of the more educated Germans in Russia’s industrial transition in 1890-1913. I demonstrate that German settlers had significant external benefits in their regions through improved schooling infrastructure and increased literacy among the local population. Educational benefits translated into a higher share of industrial occupations, per-capita local expenditures and urbanization by 1897. I also find a positive impact of education on productivity, mainly in industries that experienced technological transformation and had higher human capital requirements. Furthermore, panel estimates reveal that German areas experienced a higher industrial growth only after 1890 with the adaption of more progressive technologies. Finally, I find no evidence supporting alternative explanations of the German impact: increased agricultural productivity, lower exposure to serfdom, demographic transition or changes in landownership structure.

Keywords: Human capital; Russian economic history; Industrialization (search for similar items in EconPapers)
JEL-codes: I25 N14 O47 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2021-12
New Economics Papers: this item is included in nep-cis, nep-cwa, nep-gro, nep-his, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:hes:wpaper:0221

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