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Fighting for Growth: Labor Scarcity and Technological Progress During the British Industrial Revolution
(Forthcoming Article) - We establish a link between labor scarcity and the adoption of labor-saving
technology in industrializing England. During the Napoleonic Wars, more
than 10 percent of the male population served in the armed forces. Where recruitment
was heavy, more machines economizing on labor were adopted. Naval
recruitment, instrumented by warships’ coastal access, provides exogenous
variation in labor scarcity and suggests that the link between labor shortages
and adoption is causal. Where mechanical skills were abundant, the impact
of labor scarcity on adoption appears to be larger.