Jeanne Lafortune|Ethan Lewis|José Tessada
People and Machines: A Look at the Evolving Relationship between Capital and Skill in Manufacturing, 1860–1930, Using Immigration Shocks
Pontificia Universidad Católica de Chile|Dartmouth Hospital|Dartmouth College|Pontificia Universidad Católica de Chile
abstract paper estimates elasticity substitution capital skill manufacturing using immigrationinduced variation skill mix across us counties 1860 1930 find capital initially complemented high lowskill labor determined literacy unlike today complementary lowskill labor around 1890 capital increased relative complementarity highskill labor simulations calibrated estimates imply level capitalskill complementarity 1890 allowed manufacturing sector absorb large wave eastern southern european immigrants modest decline lessskilled relative wages would possible older production technology