Gains from factory electrification: Evidence from North Carolina, 1905–1926

Will Damron

Explorations in Economic History, 2025, vol. 96, issue C

Abstract: Between 1900 and 1930, the share of power in American manufacturing coming from electricity grew from 10% to 80%. Although electrification has been attributed with dramatic productivity gains, data limitations have constrained previous research to rely on aggregate data. Using a newly-collected dataset covering manufacturers in North Carolina in the early 1900s, I examine the effects of electrification at the establishment level. Manufacturers who electrified increased their productivity and output relative to manufacturers who did not. The effects on workers were mixed. While electrification increased average wages, it also increased the return to skill and reduced the labor share. Delays in electricity adoption point to the importance of complementary innovations in electricity transmission and financial markets.

Keywords: Electrification; Technological change (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:exehis:v:96:y:2025:i:c:s0014498325000014

DOI: 10.1016/j.eeh.2025.101654

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