Alexandra de Pleijt, Alessandro Nuvolari, Jacob Weisdorf, 20 October 2018

While technological progress has typically been seen as increasing the demand for skilled workers since the beginning of the 20th century,  technological change has historically been associated with ‘de-skilling’. This column explores how the advent of the steam engine affected human capital formation in industrialising England. More steam engines per person are found to be associated with lower shares of unskilled workers. The results run contrary to the workshop-to-factory argument of skilled workers’ downward mobility, pointing instead to a farm work-to-factory transition. 


CEPR Policy Research