Abstract
This article compares UK labour productivity during the Great Depression (GD) and the Great Recession (GR) in engineering, metal working, and allied industries. Over the downturn of the GD ...cycle, hourly labour productivity was countercyclical. Over the GR downturn, hourly productivity was procyclical. The combined flexibility of workers and hours, together with short-run diminishing returns, is argued to be the main drivers behind the GD productivity outcomes. There was less workers and hours responsiveness in the GR downturn. These differences are linked to educational and human capital arguments. Employers’ real-wage costs feature importantly in both depressions. In the GD, real hourly product wages rose steeply serving to encourage shorter work weeks, which produced positive impacts on average hourly labour productivity. Unusually, high-labour supply pressures in the GR acted to reduce real hourly product wages serving to protect the jobs of less efficient workers and to lower average hourly labour productivity.
We study labor earnings inequality during the Great Depression using establishment-level information from the Census of Manufactures (COM). Inequality, as measured by the interquartile range in ...earnings per worker, declines by 10 log points between 1929 and 1933. However, by 1935, this difference has recovered to its 1929 level. In a decomposition, this decline and then rise in inequality is entirely explained by returns to observable factors, most notably the skill premium and regional differentials. The exit of establishments plays an important role in the initial decline in inequality but barely any role in the recovery.
I examine the causal effect of bank failures during the Great Depression using the quasi-experimental setup of Richardson and Troost (2009). The experiment is based on Mississippi being divided into ...two Federal Reserve districts, which followed different policies for liquidity provision. This translated into variation in bank failures across the state. Employing a plant-level sample from the Census of Manufactures, I find that banking failures had a negative effect on revenue stemming from a fall in physical output. I find no effect on employment at the plant-level and a large decline at the county-level.
Full text
Available for:
BFBNIB, CEKLJ, NMLJ, NUK, PNG, UL, UM, UPUK
We use plant-level data from the Census of Manufactures to study collusion in the United States macaroni industry during the Great Depression. The National Industrial Recovery Act was passed in 1933 ...to promote recovery through industry coordination of economic activity. While there is no change in the price-cost margin after the law is passed, a variety of markers of anti-competitive conduct suggest that collusion indeed increased. Prices became less responsive to changes in cost, the dispersion of prices decreased, and the persistence in prices increased.
Automobile manufacture is generally regarded as the paradigmatic mass production industry, with large plants able to exploit scale economies. We argue that the radio industry also sheds important ...light on evolving production technology and determinants of competitive success in inter-war manufacturing. Timothy F. Bresnahan and Daniel M.G. Raff (1991) showed that productivity differences resulting from scale in the auto industry translated into differences in exit rates during the Depression. We find that technical scale economies did not play a large role in the radio industry. Instead selection during the Depression was on non-“technical” productivity factors, including whether or not a plant's parent company owned a brand.
State wage‐fixation tribunals developed quite particular patterns of basic wage fixation during the Depression. They declined to follow the Commonwealth Court's 10 per cent wage cut, thereby ...confining its effect to about half the workforce and creating distinctly different State and Commonwealth basic wage patterns in each capital city. Further, tribunals' uneven patterns of basic wage adjustment to deflation meant that in some states, the real State basic wage increased. Patterns of state institutional behaviour and state politics therefore help explain the stickiness of real average wage levels during the Depression.
Full text
Available for:
BFBNIB, FZAB, GIS, IJS, IZUM, KILJ, NLZOH, NUK, OILJ, PILJ, SAZU, SBCE, SBMB, UL, UM, UPUK
A recent empirical literature has shaken economists' confidence in the value of aggregate (industry-level) data to illuminate production relationships. But the statistical finding "you cannot ...aggregate," however well documented, is not an economic explanation. Plant-level relationships do aggregate in Depression-era blast furnace operations despite the presence of very substantial interplant heterogeneity, the most common economic cause of nonaggregability. The economic explanation of this lies in poor short-run substitutability of one plant's output for another's. Substitutability determines the importance of composition effects in understanding aggregate time series, constrains the potential cleansing effects of recessions, and therefore influences industry evolution quite broadly.
Full text
Available for:
BFBNIB, INZLJ, IZUM, KILJ, NMLJ, NUK, PILJ, PNG, SAZU, UL, UM, UPUK, ZRSKP
Reliance on a “representative firm” approach in studying industrial behavior during the Great Depression obscures economically interesting patterns. A newly discovered data source lets us form and ...study an establishment-level panel dataset on the motor vehicles industry, one of the largest in 1929. Substantial intraindustry heterogeneity led to large composition effects in employment, output, and productivity: the large number of plants that shut down were unlike the continuing ones. Oddly, output does not seem to have shifted among continuing producers to the relatively low-cost ones. Reconciling these should illuminate links between industrial organization and macroeconomics.
The six main stages in which the centralized rationing system for food and consumer goods, introduced in the Soviet Union between 1928-30, was dismantled is outlined. Khlevnyuk and Davies explore why ...the abolition of rationing of the major foods had a profound effect on the fiscal system and price structure from 1934-1935.
Full text
Available for:
BFBNIB, CEKLJ, DOBA, INZLJ, IZUM, KILJ, NMLJ, NUK, ODKLJ, PILJ, PNG, SAZU, SIK, UILJ, UKNU, UL, UM, UPUK, ZRSKP
Provider: - Institution: - Data provided by Europeana Collections- All metadata published by Europeana are available free of restriction under the Creative Commons CC0 1.0 Universal Public Domain ...Dedication. However, Europeana requests that you actively acknowledge and give attribution to all metadata sources including Europeana
PDF
