The impact of mechanisation on wages and employment

Fears about the effects of mechanisation on societies are not new; technology has always generated cultural anxiety throughout history. This column considers one of the most significant waves of mechanisation in history – the rise and spread of steam power in 19th century France – to examine the influence of mechanisation on labour outcomes. Rather than cutting jobs and wages, the authors find that that steam-adopting industries ended up employing up to 94% more workers than their non-steam-adopting counterparts and paid wages that were up to 5% higher on average.