Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Law
More Machines, Better Machines...Or Better Workers?, James Bessen
More Machines, Better Machines...Or Better Workers?, James Bessen
Faculty Scholarship
How much of the rapid growth in labor productivity in nineteenth century cotton weaving arose from capital-labor substitution and how much from technical change? Using an engineering production function and detailed information on inventions, I find that factor substitution accounts for little growth. However, much of the growth and most of the apparent labor-saving bias arose not from inventions, but from improved labor quality — better workers spent less time monitoring the looms. The inventions themselves were almost technically neutral because innovations in general purpose technologies were capital-saving. Labor quality played a critical role in the persistent association between economic …