These are lecture notes for the article "Technological Progress and Economic Transformation," in the Handbook of Economic Growth, 2005, v. 1B, edited by Philippe Aghion and Steven N. Durlauf. Amsterdam: Elsevier North-Holland, pp. 1225-1273.

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...

Between 1800 and 1940 the U.S. went through a dramatic demographic transition. In 1800 the average woman had 7 children, and 94 percent of the population lived in rural areas. By 1940 the average woman birthed just 2 kids, and only 43 percent of populace lived in the country. The question is:...