Paper #195

Título:

Falling real wages during an industrial revolution

Autor:

Antonio Ciccone

Fecha:

Octubre 1996

Resumen:

The Industrial Revolution was characterized by technological progress and an increasing capital intensity. Why did real wages stagnate or fall in the beginning? I answer this question by modeling the Industrial Revolution as the introduction of a relatively more capital intensive production method in a standard neoclassical framework. I show that {\sl real wages fall in the beginning of an industrial revolution if and only if technological progress in the relatively more capital intensive sector is relatively fast.}

Palabras clave:

Industrial revolution, technological change, capital intensive, production, neoclassical growth model

Códigos JEL:

D5, N1, O1, O3

Área de investigación:

Macroeconomía y Economía Internacional

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