2021
DOI: 10.1017/s0022050721000127
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More Power to the People: Electricity Adoption, Technological Change, and Labor Conflict

Abstract: Will technical change spur conflicts in the labor market? In this study, we examine electricity adoption in Sweden during the first decades of the twentieth century. Exploiting that proximity to hydropowered plants shaped the electricity network independently of previous local conditions, we estimate the impact of electricity on labor strikes. Our results indicate that electricity adoption preceded an increase in conflicts, but strikes were of an offensive nature and most common in sectors with increasing labo… Show more

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Cited by 9 publications
(3 citation statements)
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“…While automation has proven to be a benefit for the whole economy in the long run (Atack et al., 2019), its short‐run effects tend to be Pareto‐suboptimal as some jobs and skills are destroyed or left severely devalued. In a world where work is the primary mechanism to distribute income, automation, therefore, almost inevitably elicits deep distributive conflict, particularly between capital and labour (Frey, 2019; Carpettini and Voth, 2020; Molinder et al., 2021). This begs the question of how institutions that co‐determine the relative power resources these competing groups have available to them in that conflict influences the pace of labour‐saving technological change.…”
Section: Introductionmentioning
confidence: 99%
“…While automation has proven to be a benefit for the whole economy in the long run (Atack et al., 2019), its short‐run effects tend to be Pareto‐suboptimal as some jobs and skills are destroyed or left severely devalued. In a world where work is the primary mechanism to distribute income, automation, therefore, almost inevitably elicits deep distributive conflict, particularly between capital and labour (Frey, 2019; Carpettini and Voth, 2020; Molinder et al., 2021). This begs the question of how institutions that co‐determine the relative power resources these competing groups have available to them in that conflict influences the pace of labour‐saving technological change.…”
Section: Introductionmentioning
confidence: 99%
“…In the specific case of the United States, studies analysing this topic for the first phases of the distribution of electricity in the rural world find an increase in agricultural employment generated by greater activity in the sector (Gaggl et al, 2019), although in the medium and long term, electrification contributed to the structural change and the reduction in employment in the primary sector (Lewis and Severnini, 2020). Other studies conducted for the Nordic countries find an almost immediate effect in the structural change and mobility of the workers and, as a result, a reduction in agricultural employment (Leknes and Modalsli, 2020;Molinder et al, 2021). In short, it seems that rural electrification did not prevent the rural exodus processes, although it could have made them more gradual in some cases (Brassley et al, 2017b).…”
Section: Introductionmentioning
confidence: 95%
“… 1 For studies adopting geographical area, town or parish as the unit of analysis, see Molinder, Karlsson and Enflo 2019; Molinder, Karlsson, and Enflo 2021. …”
mentioning
confidence: 99%