Bruno Caprettini, Alex Trew, Hans-Joachim Voth
As populations in rich countries age and fewer youngsters enter the labour force, employers and politicians bemoan labour ‘shortages’. This column turns to historical evidence to highlight why governments should learn to love labour shortages. Between 1792 and 1815, as Britain and France fought each other for global dominance, more than one out of every ten British men ended up in the army or navy, resulting in acute labour shortages and upward pressure on wages. The authors show how this labour scarcity and a skill abundance complemented each other in driving technology diffusion, boosting British productivity in the long run.
Πηγή: Voxeu