Slow Real Wage Growth during the Industrial Revolution: Productivity Paradox or Pro-Rich Growth?

Nicholas Crafts

No 14762, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: 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 TFP 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.

Keywords: Engels' pause; Factor shares; Industrial revolution; Labour productivity; Real wages (search for similar items in EconPapers)
JEL-codes: N13 O33 O47 (search for similar items in EconPapers)
Date: 2020-05
New Economics Papers: this item is included in nep-eff, nep-gro, nep-his and nep-tid
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Slow real wage growth during the Industrial Revolution: productivity paradox or pro-rich growth? (2022)
Working Paper: Slow Real Wage Growth during the Industrial Revolution: Productivity Paradox or Pro-Rich Growth? (2020)
Working Paper: Slow Real Wage Growth during the Industrial Revolution: Productivity Paradox or Pro-Rich Growth? (2020)
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