Working Paper: NBER ID: w28597
Authors: Jeremy Atack; Robert A. Margo; Paul Rhode
Abstract: During the nineteenth century the United States urbanized – the share of the population living in urban areas increased – and industrialized – the share of the labor force in manufacturing increased. Our survey of the literature and analyses of census data suggests that a key reason was the development of a nationwide transportation system, especially the railroad. Coupled with changes in manufacturing technology and organizational form, the “transportation revolution” increased demand for manufacturing labor in urban locations. Labor supply responded and because of agglomeration economies, population density and the size and number of urban places increased. Although our focus is on the US experience, a causal role for transportation is likely for other economies that experienced historical industrialization and urbanization.
Keywords: No keywords provided
JEL Codes: N61; N91
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Transportation Revolution (L92) | Demand for Manufacturing Labor (J23) |
| Demand for Manufacturing Labor (J23) | Population Density (J11) |
| Transportation Revolution (L92) | Urbanization (R11) |
| Urbanization (R11) | Growth of Urban Centers (R11) |
| Transportation Revolution (L92) | Decrease in Transportation Costs (R41) |
| Decrease in Transportation Costs (R41) | Relocation of Manufacturing Establishments to Urban Areas (R38) |
| Technological Changes in Manufacturing Processes (O14) | Urbanization (R11) |