How Does Industrialization Affect (Equitable) Income Growth? Evidence from U.S. Manufacturing During the Early 20th Century

Authors

Leonardo Cavedagne, Union College - Schenectady, NYFollow

Abstract

This paper assesses how changes in labor productivity from the rise of industrialization impacted total, personal, and corporate income per capita at the state level from 1899-1940. Using hand-collected data from the Statistics of Income Report and the Statistical Abstract of the United States, we conduct OLS regressions and find a significant and positive relationship between labor productivity and our dependent variables. Personal income recorded the highest coefficient, demonstrating workers benefiting the most from increasing labor productivity. This finding allows for exploration into equitable income growth, as the growth in income benefits the workers more than large capital owners.

Recommended Citation

Cavedagne, Leonardo (2021) "How Does Industrialization Affect (Equitable) Income Growth? Evidence from U.S. Manufacturing During the Early 20th Century," Undergraduate Economic Review: Vol. 18: Iss. 1, Article 1.
Available at: https://digitalcommons.iwu.edu/uer/vol18/iss1/1