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Kerstin Enflo. Foto.

Kerstin Enflo

Professor

Kerstin Enflo. Foto.

Power for progress: The impact of electricity on individual labor market outcomes

Författare

  • Jonathan Jayes
  • Jakob Molinder
  • Kerstin Enflo

Summary, in English

When does technological change lead to inclusive prosperity? Research suggests that shared benefits from technological progress require concurrent expansions in education and support from pro-labor institutions. We contribute to the debate by studying electricity adoption in Sweden during the first decades of the 20th century. Exploiting that proximity to hydro-power plants shaped the electricity network independently of previous local conditions, we estimate the impact of electricity on individual labor market outcomes. We find that individuals in electricity-adopting parishes were more likely to hold electricity-related jobs, and earned on average higher incomes than comparable individuals. In terms of the distributional impact on the local labor market, the income increase was more pronounced at the lower end of the economic spectrum and for those with just primary education, contributing to reduced inequality. These positive effects were observed in places with strong and weak unions alike, suggesting that electricity was an innately labor-supporting technology. To understand the impact of technology on labor markets, more attention should be paid to the feature of the technologies themselves.

Avdelning/ar

  • Tillväxt, teknologisk förändring och ojämlikhet
  • Ekonomisk-historiska institutionen
  • Historiska arbetsmarknader

Publiceringsår

2024-04-08

Språk

Engelska

Sidor

1-38

Publikation/Tidskrift/Serie

CEPR Discussion papers

Issue

DP18973

Dokumenttyp

Working paper

Förlag

Centre for Economic Policy Research (CEPR)

Ämne

  • Economic History

Nyckelord

  • N14
  • N34
  • N74
  • O14
  • technological change
  • electrification
  • labor demand
  • infrastructure investments

Aktiv

Published

Projekt

  • Praise the people or praise the place: How culture and specialization drive long-term regional growth

ISBN/ISSN/Övrigt

  • ISSN: 0265-8003