We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Trade Shocks, Labour Markets and Migration in the First Globalisation.
- Authors
Bräuer, Richard; Kersting, Felix
- Abstract
This paper studies the economic and political effects of a large trade shock in agriculture—the grain invasion from the Americas—in Prussia during the first globalisation (1870–913). We show that this shock led to a decline in the employment rate and overall income. However, we do not observe declining per capita income and political polarisation, which we explain by a strong migration response. Our results suggest that the negative and persistent effects of trade shocks we see today are not a universal feature of globalisation, but depend on labour mobility. For our analysis, we digitise data from Prussian industrial and agricultural censuses on the county level and combine them with national trade data at the product level. We exploit the cross-regional variation in cultivated crops within Prussia and instrument with Italian and United States trade data to isolate exogenous variation.
- Subjects
PRUSSIA (Germany); LABOR market; LABOR mobility; ECONOMIC globalization; GLOBALIZATION; AGRICULTURE; POLARIZATION (Social sciences); EMPLOYMENT statistics
- Publication
Economic Journal, 2024, Vol 134, Issue 657, p135
- ISSN
0013-0133
- Publication type
Article
- DOI
10.1093/ej/uead068