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Technology-Skill Complementarity in Early Phases of Industrialization

Raphaël Franck, Oded Galor

NBER Working Paper No. 23197
Issued in February 2017
NBER Program(s):Economic Fluctuations and Growth

The research explores the effect of industrialization on human capital formation. Exploiting exogenous regional variations in the adoption of steam engines across France, the study establishes that, in contrast to conventional wisdom that views early industrialization as a predominantly deskilling process, the industrial revolution was conducive for human capital formation, generating wide-ranging gains in literacy rates and educational attainment.

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Document Object Identifier (DOI): 10.3386/w23197

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