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PERI Working Papers

2017

Inequality

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Workers And Technological Change In The United States, Mark Stelzner, Enzo Cerrutti Nov 2017

Workers And Technological Change In The United States, Mark Stelzner, Enzo Cerrutti

PERI Working Papers

In this paper, we put forward a theoretical framework for understanding a positive relationship between labor laws and innovation and rigorously test it against both historical and empirical data. We show how several periods in the economic history of the United States – like the increase in slave-field hand productivity in cotton picking in the Antebellum South, the transition in the North from artisanal shops to nonmechanized factories, the increase in productivity in mechanized textile factories in the Northeast in the late Antebellum period, and the increase in productivity in sharecropping after the Civil War – can be understood, at …