Wages, Prices, and Labor Markets Before the Civil War

Claudia Goldin and Robert Margo

No 3198, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Two opposing views of the antebellum economy are tested. One is that aggregate economic activity was severely diminished and that unemployment was substantial and prolonged during several downturns. The alternative interpretation is that antebellum fluctuations were more apparent than real; nominal wages, not labor quantities, did most of the adjusting. We analyze data on real wages for laborers, artisans, and clerks across four regions (Northeast, North Central, South Atlantic, and South Central) during 1821 to 1856. Various time-series econometric methods reveal that shocks to real wages persisted even five years after an innovation, but that their impact eventually vanished. The persistence of shocks was less for agricultural labor than for other occupations, less for growing regions than for more mature ones, less for unskilled than for skilled labor, and probably less before 1860 than after. Although nominal wages and prices never strayed far from each other over the long run, the persistence of shocks was considerable during the 1821 to 1856 period. We, therefore, find evidence to support the first view of the antebellum economy, although the degree of unemployment in cities and industrial towns remains unknown.

Date: 1989-12
Note: DAE
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Published as Goldin, Claudia A. and Hugh Rockoff, eds., Strategic Factors in Nineteenth Century American Economic History, Chicago: The University of Chicago Press , 1992, pp. 67-104.
Published as Wages, Prices, and Labor Markets before the Civil War , Claudia Goldin, Robert A. Margo. in Strategic Factors in Nineteenth Century American Economic History: A Volume to Honor Robert W. Fogel , Goldin and Rockoff. 1992

Downloads: (external link)
http://www.nber.org/papers/w3198.pdf (application/pdf)

Related works:
Chapter: Wages, Prices, and Labor Markets before the Civil War (1992)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:3198

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w3198

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().