Advertisement

Education and Socioeconomic Development During the Industrialization

  • Sascha O. Becker
  • Ludger WoessmannEmail author
Reference work entry

Abstract

This chapter discusses recent advances in our empirical knowledge of how education affected socioeconomic development during the industrialization. While early work attributed little role to formal education at the onset of the British Industrial Revolution, recent evidence is more positive. There is evidence, from Prussia and other European countries, that education played an important role in the first and second phases of industrialization in follower countries. While basic education seems to have been particularly relevant for the diffusion of the new industrial technologies, there is evidence that upper-tail human capital also played a role. In addition, the education of the population can account for major parts of the difference in Protestant and Catholic economic history. Beyond economic development, education also affected other societal developments during the industrialization. Educational expansion – in particular of advanced secondary schools – appears to have been an important force behind the decade-long process of secularization during the second phase of industrialization. In addition, the fertility decline during the demographic transition is closely related to increased education both in the generation of parents and of children, the latter indicating a significant trade-off between the quantity and quality of children.

Keywords

Education Industrialization Economic development Economic history Nineteenth century Human capital Schooling Protestantism Secularization Demographic transition Fertility 

References

  1. A’Hearn B (1998) Institutions, externalities, and economic growth in Southern Italy: evidence from the cotton textile industry, 1861–1914. Econ Hist Rev 51(4):734–762CrossRefGoogle Scholar
  2. Anderson CA, Bowman MJ (1976) Education and economic modernization in historical perspective. In: Stone L (ed) Schooling and society: studies in the history of education. Johns Hopkins University Press, Baltimore, pp 3–19Google Scholar
  3. Baten J, van Zanden JL (2008) Book production and the onset of modern economic growth. J Econ Growth 13(3):217–235CrossRefGoogle Scholar
  4. Becker SO, Woessmann L (2008) Luther and the girls: religious denomination and the female education gap in nineteenth-century Prussia. Scand J Econ 110(4):777–805CrossRefGoogle Scholar
  5. Becker SO, Woessmann L (2009) Was Weber wrong? A human capital theory of Protestant economic history. Q J Econ 124(2):531–596CrossRefGoogle Scholar
  6. Becker SO, Woessmann L (2010) The effect of Protestantism on education before the industrialization: evidence from 1816 Prussia. Econ Lett 107(2):224–228CrossRefGoogle Scholar
  7. Becker SO, Woessmann L (2013) Not the opium of the people: income and secularization in a panel of Prussian counties. Am Econ Rev 103(3):539–544CrossRefGoogle Scholar
  8. Becker SO, Cinnirella F, Woessmann L (2010) The trade-off between fertility and education: evidence from before the demographic transition. J Econ Growth 15(3):177–204CrossRefGoogle Scholar
  9. Becker SO, Hornung E, Woessmann L (2011) Education and catch-up in the Industrial Revolution. Am Econ J Macroecon 3(3):92–126CrossRefGoogle Scholar
  10. Becker SO, Cinnirella F, Woessmann L (2012) The effect of investment in children’s education on fertility in 1816 Prussia. Cliometrica 6(1):29–44CrossRefGoogle Scholar
  11. Becker SO, Cinnirella F, Woessmann L (2013) Does women’s education affect fertility? Evidence from pre-demographic transition Prussia. Eur Rev Econ Hist 17(1):24–44CrossRefGoogle Scholar
  12. Becker SO, Cinnirella F, Hornung E, Woessmann L (2014) iPEHD – the ifo Prussian Economic History Database. Hist Methods 47(2):57–66CrossRefGoogle Scholar
  13. Becker SO, Nagler M, Woessmann L (2017) Education and religious participation: city-level evidence from Germany’s secularization period 1890–1930. J Econ Growth 22(3):273–311CrossRefGoogle Scholar
  14. Bessen J (2003) Technology and learning by factory workers: the stretch-out at Lowell, 1842. J Econ Hist 63(1):33–64CrossRefGoogle Scholar
  15. Bleakley H, Lange F (2009) Chronic disease burden and the interaction of education, fertility, and growth. Rev Econ Stat 91(1):52–65CrossRefGoogle Scholar
  16. Boppart T, Falkinger J, Grossmann V, Woitek U, Wüthrich G (2013) Under which conditions does religion affect educational outcomes? Explor Econ Hist 50(2):242–266CrossRefGoogle Scholar
  17. Boppart T, Falkinger J, Grossmann V (2014) Protestantism and education: reading (the bible) and other skills. Econ Inq 52(2):874–895CrossRefGoogle Scholar
  18. Cantoni D (2015) The economic effects of the Protestant Reformation: testing the Weber hypothesis in the German lands. J Eur Econ Assoc 13(4):561–598CrossRefGoogle Scholar
  19. Cantoni D, Dittmar J, Yuchtman N (2018) Reformation and reallocation: religious and secular economic activity in early modern Germany. Q J Econ 133(4):2037–2096CrossRefGoogle Scholar
  20. Cinnirella F, Hornung E (2016) Landownership concentration and the expansion of education. J Dev Econ 121:135–152CrossRefGoogle Scholar
  21. Cinnirella F, Schüler RM (2018) Nation building: the role of central spending in education. Explor Econ Hist 67:18–39CrossRefGoogle Scholar
  22. Cinnirella F, Streb J (2017) The role of human capital and innovation in economic development: evidence from post-Malthusian Prussia. J Econ Growth 22(2):193–227CrossRefGoogle Scholar
  23. Cipolla CM (1969) Literacy and development in the West. Penguin, HarmondsworthGoogle Scholar
  24. de Pleijt AM (2018) Human capital formation in the long run: evidence from average years of schooling in England, 1300–1900. Cliometrica 12(1):99–126CrossRefGoogle Scholar
  25. Diebolt C, Menard A-R, Perrin F (2017) Behind the fertility–education nexus: what triggered the French development process? Eur Rev Econ Hist 21(4):357–392CrossRefGoogle Scholar
  26. Dittmar J, Meisenzahl RR (2018) Public goods institutions, human capital, and growth: evidence from German history. Rev Econ Stud (forthcoming)Google Scholar
  27. Easterlin RA (1981) Why isn’t the whole world developed? J Econ Hist 41(1):1–19CrossRefGoogle Scholar
  28. Engelsing R (1973) Analphabetentum und Lektüre: Zur Sozialgeschichte des Lesens in Deutschland zwischen feudaler und industrieller Gesellschaft. Metzler, StuttgartGoogle Scholar
  29. Fernihough A (2017) Human capital and the quantity-quality trade-off during the demographic transition. J Econ Growth 22(1):35–65CrossRefGoogle Scholar
  30. Field AJ (1989) Educational reform and manufacturing development in mid-nineteenth century Massachusetts. Garland, New YorkGoogle Scholar
  31. Franck R, Iannaccone LR (2014) Religious decline in the 20th century West: testing alternative explanations. Public Choice 159(3–4):385–414CrossRefGoogle Scholar
  32. Freud S (1927 [1961]) The future of an illusion, Strachey J (ed). W. W. Norton, New York. [Original version (in German) published in: Psychoanalytischer Verlag, 1927]Google Scholar
  33. Galloway PR, Hammel EA, Lee RD (1994) Fertility decline in Prussia, 1875–1910: a pooled cross-section time series analysis. Popul Stud 48(1):135–158CrossRefGoogle Scholar
  34. Galor O (2005) From stagnation to growth: unified growth theory. In: Aghion P, Durlauf SN (eds) Handbook of economic growth, vol 1A. North Holland, Amsterdam, pp 171–293Google Scholar
  35. Galor O, Moav O (2006) Das Human-Kapital: a theory of the demise of the class structure. Rev Econ Stud 73(1):85–117CrossRefGoogle Scholar
  36. Galor O, Moav O, Vollrath D (2009) Inequality in land ownership, the emergence of human capital promoting institutions, and the great divergence. Rev Econ Stud 76(1):143–179CrossRefGoogle Scholar
  37. Gawthrop R, Strauss G (1984) Protestantism and literacy in early modern Germany. Past Present 104:31–55CrossRefGoogle Scholar
  38. Go S, Lindert PH (2010) The uneven rise of American public schools to 1850. J Econ Hist 70(1):1–26CrossRefGoogle Scholar
  39. Goldin C (2016) Human capital. In: Diebolt C, Haupert M (eds) Handbook of cliometrics. Springer, New YorkGoogle Scholar
  40. Goldin C, Katz LF (2009) Why the United States led in education: lessons from secondary school expansion, 1910 to 1940. In: Eltis D, Lewis FD (eds) Human capital and institutions: a long-run view. Cambridge University Press, New YorkGoogle Scholar
  41. Green L (1979) The education of women in the Reformation. Hist Educ Q 19(1):93–116CrossRefGoogle Scholar
  42. Hanushek EA, Woessmann L (2008) The role of cognitive skills in economic development. J Econ Lit 46(3):607–668CrossRefGoogle Scholar
  43. Hanushek EA, Woessmann L (2012) Do better schools lead to more growth? Cognitive skills, economic outcomes, and causation. J Econ Growth 17(4):267–321CrossRefGoogle Scholar
  44. Hanushek EA, Woessmann L (2016) Knowledge capital, growth, and the East Asian miracle. Science 351(6271):344–345CrossRefGoogle Scholar
  45. Hölscher L (2001) Datenatlas zur religiösen Geographie im protestantischen Deutschland: Von der Mitte des 19. Jahrhunderts bis zum Zweiten Weltkrieg, 4 vols. Walter de Gruyter, BerlinGoogle Scholar
  46. Iannaccone LR (1998) Introduction to the economics of religion. J Econ Lit 36(3):1465–1495Google Scholar
  47. Kelly M, Mokyr J, Gráda CÓ (2014) Precocious Albion: a new interpretation of the British Industrial Revolution. Annu Rev Econ 6(1):363–389CrossRefGoogle Scholar
  48. Klemp M, Weisdorf J (2018) Fecundity, fertility and the formation of human capital. Econ J (forthcoming)Google Scholar
  49. Kocka J (1977) Entrepreneurship in a late-comer country: the German case. In: Nakagawa K (ed) Social order and entrepreneurship. University of Tokyo Press, Tokyo, pp 149–198Google Scholar
  50. Komlos J (2000) The Industrial Revolution as the escape from the Malthusian trap. J Eur Econ Hist 29(2–3):307–331Google Scholar
  51. Landes DS (1980) The creation of knowledge and technique: today’s task and yesterday’s experience. Daedalus 109(1):111–120Google Scholar
  52. Laqueur TW (1974) Debate: literacy and social mobility in the Industrial Revolution in England. Past Present 64:96–107CrossRefGoogle Scholar
  53. Lindert PH (2004) Growing public: social spending and economic growth since the eighteenth century, 2 vols. Cambridge University Press, CambridgeGoogle Scholar
  54. Luther M (1520) An den christlichen Adel deutscher Nation von des christlichen Standes Besserung (To the Christian nobility of the German nation concerning the reform of the Christian estate). In: Dr. Martin Luthers Werke: Kritische Gesamtausgabe, vol 6. Verlag Hermann Böhlhaus Nachfolger, Weimar, 1888Google Scholar
  55. Luther M (1524) An die Ratsherren aller Städte deutschen Landes, dass sie christliche Schulen aufrichten und halten sollen (To the councilmen of all cities in Germany that they establish and maintain Christian schools). In: Dr. Martin Luthers Werke: Kritische Gesamtausgabe, vol 15. Verlag Hermann Böhlhaus Nachfolger, Weimar, 1899Google Scholar
  56. Luther M (1530) Eine Predigt, daß man Kinder zur Schule halten solle (A sermon on keeping children in school). In: Dr. Martin Luthers Werke: Kritische Gesamtausgabe, vol 30, Part 2. Verlag Hermann Böhlhaus Nachfolger, Weimar, 1909Google Scholar
  57. Madsen JB, Murtin F (2017) British economic growth since 1270: the role of education. J Econ Growth 22(3):229–272CrossRefGoogle Scholar
  58. Markussen I (1990) The development of writing ability in the Nordic countries in the eighteenth and nineteenth centuries. Scand J Hist 15(1):37–63CrossRefGoogle Scholar
  59. Marx K (1844) Zur Kritik der Hegel’schen Rechtsphilosophie: Einleitung. In: Jahrbücher D-F (ed) Arnold Ruge, Karl Marx. Bureau der Jahrbücher, Paris, pp 71–85Google Scholar
  60. McCleary RM, Barro RJ (2006) Religion and economy. J Econ Perspect 20(2):49–72CrossRefGoogle Scholar
  61. Meisenzahl RR, Mokyr J (2012) The rate and direction of invention in the British Industrial Revolution: incentives and institutions. In: Lerner J, Stern S (eds) The rate and direction of inventive activity revisited. University of Chicago Press, ChicagoGoogle Scholar
  62. Mitch D (1993) The role of human capital in the first Industrial Revolution. In: Mokyr J (ed) The British Industrial Revolution: an economic perspective. Westview, Boulder, pp 267–307Google Scholar
  63. Mokyr J (1990) The lever of riches: technological creativity and economic progress. Oxford University Press, OxfordGoogle Scholar
  64. Mokyr J (1999) The new economic history and the Industrial Revolution. In: Mokyr J (ed) The British Industrial Revolution: an economic perspective, 2nd edn. Westview, Boulder, pp 1–127Google Scholar
  65. Murphy TE (2015) Old habits die hard (sometimes): can département heterogeneity tell us something about the French fertility decline? J Econ Growth 20(2):177–222CrossRefGoogle Scholar
  66. Murtin F (2013) Long-term determinants of the demographic transition, 1870–2000. Rev Econ Stat 95(2):617–631CrossRefGoogle Scholar
  67. Nelson RR, Phelps ES (1966) Investment in humans, technological diffusion, and economic growth. Am Econ Rev 56(2):69–75Google Scholar
  68. O’Rourke KH, Williamson JG (1996) Education, globalization and catch-up: Scandinavia in the Swedish mirror. Scand Econ Hist Rev 43(3):287–309CrossRefGoogle Scholar
  69. Rosés JR (1998) Measuring the contribution of human capital to the development of the Catalan factory system (1830–61). Eur Rev Econ Hist 2(1):25–48CrossRefGoogle Scholar
  70. Sandberg LG (1979) The case of the impoverished sophisticate: human capital and Swedish economic growth before World War I. J Econ Hist 39(1):225–241CrossRefGoogle Scholar
  71. Sanderson M (1972) Literacy and social mobility in the Industrial Revolution in England. Past Present 56:75–104CrossRefGoogle Scholar
  72. Schüler RM (2016) Educational inputs and economic development in end-of-nineteenth-century Prussia. ifo working paper 227. ifo Institute, MunichGoogle Scholar
  73. Schultz TW (1975) The value of the ability to deal with disequilibria. J Econ Lit 13(3):827–846Google Scholar
  74. Squicciarini MP, Voigtländer N (2015) Human capital and industrialization: evidence from the age of enlightenment. Q J Econ 130(4):1825–1883CrossRefGoogle Scholar
  75. Taylor AM (1999) Sources of convergence in the late nineteenth century. Eur Econ Rev 43(9): 1621–1645CrossRefGoogle Scholar
  76. Weber M (1904/05) Die protestantische Ethik und der “Geist” des Kapitalismus. Arch Sozialwiss Sozialpolitik 20:1–54 and 21:1–110. Reprinted in: Gesammelte Aufsätze zur Religionssoziologie, 1920:17–206. [English translation: The Protestant ethic and the spirit of capitalism, translated by Talcott Parsons, 1930/2001, London: Routledge Classics.]Google Scholar
  77. Welch F (1970) Education in production. J Polit Econ 78(1):35–59CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.University of WarwickCoventryUK
  2. 2.CAGECoventryUK
  3. 3.CEPRLondonUK
  4. 4.CESifoMunichGermany
  5. 5.IZABonnGermany
  6. 6.ifoMunichGermany
  7. 7.ROAMaastrichtNetherlands
  8. 8.University of Munich and ifo InstituteMunichGermany

Personalised recommendations