Land, Labor and the Wage-Rental Ratio: Factor Price Convergence in the Late Nineteenth Century
Kevin O'Rourke (),
Alan Taylor () and
Jeffrey G. Williamsmn
Authors registered in the RePEc Author Service: Jeffrey Gale Williamson ()
No 46, NBER Historical Working Papers from National Bureau of Economic Research, Inc
This paper augments the new historical literature on factor price convergence. The focus is on the late nineteenth century, when economic convergence among the current OECD countries was dramatic; and the focus is on the convergence between Old World and New, by far the biggest participants in the global convergence during the period; and the focus is on land and labor, the two most important factors of production in the nineteenth century. Wage-rental ratios boomed in the Old World and collapsed in the New, moving the resource-rich and labor scarce New World closer to the resource-scarce and labor-abundant Old World. The paper uses both computable general equilibrium models and econometrics to identify the forces causing the convergence. These include: commodity price convergence and the Heckscher-Ohlin Theorem of factor price equalization; migration, capital-deepening and frontier disappearance, factors stressed by Malthus, Ricardo, Wicksell and Viner; and factor-saving biases associated with induced-innovational theory, an endogenous response to relative factor scarcities.
References: Add references at CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed
Published as "Factor Price Convergence in the Late 19th Century," International Economic Review,, vol. 37., no. 3, pp, 499-530, August 1996.
Downloads: (external link)
Working Paper: Land, Labor and the Wage-Rental Ratio Factor Price Convergence in the Late Ninteenth Century (1993)
Working Paper: Land, labor and the wage-rental ratio: factor price convergence in the late nineteenth century (1993)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberhi:0046
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Historical 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 ().