Technological Progress and Economic Transformation

Growth theory goes a long way toward explaining phenomena in labor economics linked with U.S. economic development. Some examples are: (a) the secular decline in fertility between 1800 and 1980, (b) the decline in agricultural employment and the rise in skill since 1800, (c) the demise of child labor starting around 1900, (d) the increase in female labor-force participation from 1900 to 1980. Growth theory models are presented to address all of these facts, plus the temporary rise in fertility that occurred during the baby boom. The analysis emphasizes the role of technological progress as a catalyst for economic transformation. A separate set of lecture notes on the paper is available at: https://urresearch.rochester.edu/handle/1802/6714