Working Paper: NBER ID: w16494
Authors: Alan L. Olmstead; Paul W. Rhode
Abstract: Between 1800 and 1860, the United States became the preeminent world supplier of cotton as output increased sixty-fold. Technological changes, including the introduction of improved cotton varieties, contributed significantly to this growth. Measured output per worker in the cotton sector rose four-fold and large regional differences emerged. By 1840, output per worker in the New South was twice that in the Old South. The economy-wide increase is explained, in equal measure, by growth in output per worker at fixed locations and by the reallocation of labor across regions. These results offer a new view on the dynamics of economic development in antebellum America.
Keywords: No keywords provided
JEL Codes: N11; O13; O31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Technological changes in cotton varieties (O33) | Increased productivity (O49) |
| Increased productivity (O49) | Geographic shift of cotton production from old south to new south (N91) |
| Technological advancements (O33) | Productivity growth (O49) |
| Labor reallocation (J29) | Regional productivity differences (R12) |
| Biological revolution in cotton production (Q16) | Enhanced plantation productivity (O13) |