industrial revolution until 1900 - Economics · – ByBy law, womenwomens’s jobs were on the ......

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8/31/2011 1 Thomas Malthus, 1766-1834 [It must be acknowledged that} … In every age and in every State in which man has existed, or does now exist That the increase of population is That the increase of population is necessarily limited by the means of subsistence, That population does invariably increase when the means of subsistence increase, and That the superior power of That the superior power of population is repressed, and the actual population kept equal to the means of subsistence, by misery and vice. 1798. An essay on the principle of population Economics as the dismal science Robert Fogel, Nobel Prize, 1993 For application of economics and statistics to the analysis of history. Recent work is on technological change and the improvement in human ph siolog techno ph sio physiology: techno-physio evolution

Transcript of industrial revolution until 1900 - Economics · – ByBy law, womenwomens’s jobs were on the ......

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Thomas Malthus, 1766-1834

[It must be acknowledged that} … In every age and in every State in which man has existed, or does now exist•That the increase of population is•That the increase of population is necessarily limited by the means of subsistence,•That population does invariably increase when the means of subsistence increase, and•That the superior power ofThat the superior power of population is repressed, and the actual population kept equal to the means of subsistence, by misery and vice.1798. An essay on the principle of population

Economics as the dismal science

Robert Fogel, Nobel Prize, 1993For application of economics and statistics to the analysis of history.Recent work is on technological change and the improvement in human ph siolog techno ph siophysiology: techno-physio evolution

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World standards of living before 1700

• GDP per capita was broadly stable for 1000 years before the Industrial Revolutionbefore the Industrial Revolution 

• Almost everyone lived at/near subsistence

• Growth rate was about .02% per year between 0 and 1700→Over 1700 years, real per capita incomes rose 40%

C R l 640% i h U S b• Contrast:  Real wages rose 640% in the U.S. between 1900‐2000

• World population grew .06% per year from 0‐1700 (~3x).  Grew 6x between 1800‐2000.

• Agrarian economy:  Whole family works on lf ffi i t b i t l l fself‐sufficient, subsistence level farm

• Everyone works at home, but there is specialization by gender

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Job allocation by sex in 738 primitive societies

Source: Joyce Jacobsen Economics of Gender, 2007

Industrial Revolution• Industrial Revolution followed an agricultural revolution that started in 1700s– Improvement of animal husbandry, development of p y pimproved breeds

– Ag chemicals raise yields– Lowers food prices (raises real urban wages) and frees labor for industry

• Britain: 1780‐1830– Innovations in steam, textile manufacture, steel, chemicals ( l bl hi l d )(glass, paper, bleaching, portland cement)

• United States: First textile mills around  1820 Heavy use of steam followed the Civil War 

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GDP per capita, 1600-2000, various regions, U.S. dollars

Agriculture and Industrial Revolutions led to sharp increases in income, health, urbanization, education.

Huffman and Orazem. 2006. The Role of Agriculture and Human Capital in Economic Growth: Farmers, Schooling, and Health.” in Evenson and Pingali, eds. Handbook of Agricultural Economics, Vol. 3

England

Church records provide information on births and deaths.

France

As agricultural revolution progressed, crude death rates fell

Fogel, Robert W.  The Escape from Hunger and Premature Death, 1700‐2100  Cambridge University Press, 2004.

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Life expectancy rose dramatically with improvements in diet

Fogel, Robert W.  The Escape from Hunger and Premature Death, 1700‐2100  Cambridge University Press, 2004.

600

700

800

ars

Real per capita incomes in the United States, 1799‐1938

200

300

400

500

600

Income in 1926 do

lla Declining life expectancy

1001799 1809 1819 1829 1839 1849 1859 1869 1879 1889 1899 1909 1919 1929 1939

Year

Robert F. Martin. 1939. National Income in the United States, 1799-1938. National Industrial Conference Board, New York.

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50

78

Approximate OECD life expectancy

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Huffman and Orazem. 2006. The Role of Agriculture and Human Capital in Economic Growth: Farmers, Schooling, and Health.” in Evenson and Pingali, eds. Handbook of Agricultural Economics, Vol. 3

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Growth spurred by technological advance inadvance in agriculture, health, and manufacturing and tremendous growth in human capital

Fogel, Robert W.  The Escape from Hunger and Premature Death, 1700‐2100  Cambridge University Press, 2004.

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Caloric intake in adult male equivalent units

Equal to Rwanda in 1965

Average American male requires 2279 calories for baseline maintenance

Fogel, Robert W.  The Escape from Hunger and Premature Death, 1700‐2100  Cambridge University Press, 2004.

Height and life expectancy

Fogel, Robert W.  The Escape from Hunger and Premature Death, 1700‐2100  Cambridge University Press, 2004.

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BMI and risk of death

Fogel, Robert W.  The Escape from Hunger and Premature Death, 1700‐2100  Cambridge University Press, 2004.

Fogel, Robert W.  The Escape from Hunger and Premature Death, 1700‐2100  Cambridge University Press, 2004.

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Fogel, Robert W.  The Escape from Hunger and Premature Death, 1700‐2100  Cambridge University Press, 2004.

Male literacy rates for France, Scotland, and England and Wales, based on ,marriage registry

Lawrence Stone. Literacy and Education in England 1640-1900.” Past & Present42 (February 1969): 69-139.

Education expanded as life expectancy increased

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Bridegroom literacy in Oxfordshire and Glouchester, 1625-1822

Lawrence Stone. Literacy and Education in England 1640-1900.” Past & Present 42 (February 1969): 69-139.

Differences in literacy by social status

As income and life expectancy increase, education increases

Amount spent on necessities

Fogel, Robert W.  The Escape from Hunger and Premature Death, 1700‐2100  Cambridge University Press, 2004.

necessities

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The agricultural revolution lowers the price of food which raises real wage for urban workers

Summary of the agricultural and industrial revolution

real wage for urban workers

Raises caloric content which improves capacity for work

Reduces malnutrition which raises life expectancy, lowers physical and mental stunting

More time, capacity means more human capital investment

Rural to urban migration means better access to schools

• Move to the city

Life in the industrial revolution

– Factory cities were dirty

– Constant cleaning needed for coal dust

– Factory jobs available.  Firms would hire the whole family or anyone willing to work.  

– Work is now away from home– Work is now away from home 

– Households need to decide how to allocate time. Does specialization continue?

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FranceBritain

18501960

1960

Tilly, Louise A. and Joan W. Scott. 1978. Women, Work and Family Holt , Rinehart and Winston

1850

• Roubaix: textile town: 50% of workforce• City archivist described it as “The Manchester of France”

• One of its poets described it as, “a city without a past in art without beauty without a history”art, without beauty, without a history.

• City hall today is black with sootManchester England, circa 1830

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• Anzin: coal mining and metal working (49% of workforce, all men and boys)

By law women’s jobs were on the surface– By law, women s jobs were on the surface. • Anzin grew due to demand for coal during the industrial revolution.

• Local poet– Your name is black, Anzin, as black as your face

– You have your heroes, but where is your history?

– Women were 23% of workforce, mostly in dressmaking, shops

– Fewer jobs for girls, but 50% of boys 10‐14 worked

Tilly, Louise A. and Joan W. Scott. 1978. Women, Work and Family Holt , Rinehart and Winston

Anzin Coal mining

Roubaix: Textile town

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boys and girls were so small they had to climb up on to the spinning frame to mend broken threads and to put back the empty bobbinsto put back the empty bobbins

"breakers“ hammer on the coal until it is in more valuable small lumps

http://www.historyplace.com/unitedstates/childlabor/

• Child labor was an important source of i F t i i ht hi th f th dincome. Factories might hire the father and children—all wages went to the parents

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Women were 31% of work force in 1872

Tilly, Louise A. and Joan W. Scott. 1978. Women, Work and Family Holt , Rinehart and Winston

19061906

Tilly, Louise A. and Joan W. Scott. 1978. Women, Work and Family Holt , Rinehart and Winston

Once women married, most Once women married, most left the labor force.left the labor force.left the labor force.left the labor force.

Children’s time in market Children’s time in market substitutes for mother’s time substitutes for mother’s time in the marketin the market

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• Girls might be allowed to set money aside for a dowry for when they marriedy y

• Spinster: A woman who did not marry and hence remained in factory work for life

• Factory work may have been better than other options

• …whereas a large number of factory girls cannot be prevailed upon g y g p pto give up their factory work after marriage, the majority of shop assistants look upon marriage as their one hope of release and would, as one girl expressed it, “marry anybody to get out of the drapery business.”

– Tilly and Scott Women, Work and Family

• Tilly and Scott Women, Work and Family“[M i d ] f d i th l t i d t i li d– “[Married women] were found in the least industrialized sectors, those sectors where the least separation existed between home and workplace and where women could control the rhythm of their work.”

– Typical jobs:  home piecework; charwomen; laundress; k b d ( f f b hinkeeper; boarders (as of 1930s, 30% of urban homes in 

the U.S. had boarders)

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• Married women worked at home because it was costly for the family to have the mother work in the marketwork in the market

• Infant child care:  options limited (more later)

• Women controlled the family budget– 49% was food; clothing (12%) and rent (13%)=74%

– Husband controlled the rest (wine, beer, tobacco)Husband controlled the rest (wine, beer, tobacco)

Tilly, Louise A. and Joan W. Scott. 1978. Women, Work and Family Holt , Rinehart and Winston

Lancashire England, 1850s

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Pittsburgh: Hell with the lid off

In the 1700s married women averaged 4-6 surviving children over their lifetimes in Germany, France and England. It might take 8-10 births to reach 5 children.

Fertility and child care in the industrial revolution

take 8 10 births to reach 5 children.

Fertility control through birth spacing and short time window before menopause or death

Age of marriage was early 20s.

Leslie Albrecht Huber. Parish Records:Understanding Parish Birth Recordshttp://www.understandingyourancestors.com/ar/parishBirth.aspx

Maternal death in childbirth was about 1-1.2% or about 5% cumulative over multiple births

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Infant mortality was high1800s, Infant death before age one: 17% in Sweden, 30% in Germany. In France, >50% died before age ten.

Fertility and child care in the industrial revolution

y , % g

Substitutes for mother’s timeBreastfeeding versus wet nursingSubstitution of other milk or solids for mother’s milkOverlaying

Leslie Albrecht Huber. Parish Records:Understanding Parish Birth Recordshttp://www.understandingyourancestors.com/ar/parishBirth.aspx

Parents who were concerned about their infants well-being would be advised not to outsource care

Wet nurses

– “If an infant survived the trip[ to the wet nurse, often a long distance over rough roads, if furthermore the nurse had sufficient milk to nourish it and the other children she took in, and if it survived the other hazards of infancy under the care of an often indifferent parent‐substitute, then the child was returned to the parents at an age when it could care for itself.  The points, of course, is that many infants never returned.  Usually they died.” 

Tilly and Scott Women, Work and Family , p.133

• Infant mortality rates highest in places where married women worked away from home.

• Infant mortality rates 30‐40% in places where women did not breast feed.

Tilly and Scott Women, Work and Family , p.133

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Overlaying was perceived to be one common way of conducting infanticide in Victorian England

Hard numbers on infanticide unavailable and deaths from indifference or baby farming are notdeaths from indifference or baby farming are not that different from murder. In the 1800s, about one thousand infant deaths were probably due to infanticide

R. Sauer. 1978 “Infanticide and Abortion in Nineteenth-Century Britain.” Population Studies 32(1):81-93 .

Most common among poor, unmarried, girl babies

Sex ratios in China, 1982-2005: Missing girls since the initiation of the one-child policy in 1978

Normal is 105/100

Shuzhuo Li 2007. “Imbalanced Sex Ratio at Birth and Comprehensive Intervention in China.”Institute for Population and Development Studies, School of Public Policy and Administration, Xi’an Jiaotong University. UNFPA

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Highest and Lowest Chinese Provincial Ratios of Boys/Girls by year

Wei, Shang-Jin and Xiabo Zhang. 2011. “The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China.” Journal of Political Economy 119(3): 511-564.

Why Households say they save in China

Wei, Shang-Jin and Xiabo Zhang. 2011. “The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China.” Journal of Political Economy 119(3): 511-564.

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Wedding Day

Wei, Shang-Jin and Xiabo Zhang. 2011. “The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China.” Journal of Political Economy 119(3): 511-564.

20-year lagged

Rising ratio of boys/girls explains ~60% of the increase in aggregate savings rate in China

ratio boys/girls and aggregate savings rate in

Wei, Shang-Jin and Xiabo Zhang. 2011. “The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China.” Journal of Political Economy 119(3): 511-564.

rate in China

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Sex ratios in India, 2001: Missing girls especially in urban areas and hi h ihigher income groups

Christophe Z GuilmotoChristophe Z. Guilmoto. 2007. “Characteristics of Sex-Ratio Imbalances in India and Future Scenarios.” LPED/IRD, Paris. UNFPA

Agriculture and Industrial Revolutions led to sharp increases in income, health, urbanization, education.

Did it raise child labor? Note: All kids worked on the farm.

U.S. in 1820: children <16 were 23% of manufacturing labor force, 50% of textile mills; 41% of wool mills; 24% of paper mills

Child labor share started to decline by 1840

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Percent labor force participation rates of children, 10 to 15 years old

19171917‐‐19 Department of Labor Study found child labor 19 Department of Labor Study found child labor represented 23% of family incomerepresented 23% of family income

Percent of employed in agriculture is in brackets