Citation

Discussion Paper Details

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Title: Human Capital and Productivity in Manufacturing during the Twentieth Century: Britain, Germany and the United States

Author(s): Stephen N Broadberry and Karin Wagner

Publication Date: October 1994

Keyword(s): Human Capital, Manufacturing and Productivity

Programme Area(s): Human Resources

Abstract: In this paper we relate trends in the accumulation of human capital in Britain, Germany and the United States to overall production strategy and productivity trends. In the United States a strategy of standardized mass production led to high levels of labour productivity and concentration on the development of managerial capabilities, but neglect of the skills of the shop-floor labour force, while in Britain and Germany concentration on craft production led to greater emphasis on shop-floor skills. After the Second World War, however, British firms made an unsuccessful move towards standardized mass production. Since shop-floor skills were neglected, British firms were left in a weak position to take advantage of the recent switch of technological leadership away from American mass production methods to German modern craft production or `flexible production' methods, intensive in the use of skilled shop-floor labour within a small batch industrial environment. British manufacturing also adopted an American style `mission oriented' approach to R&D in contrast to the German style `diffusion oriented' approach, which helped to reinforce the move away from craft production. Since the 1980s, Britain has returned to a more skilled labour intensive strategy but still has a large skills gap to make good.

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Bibliographic Reference

Broadberry, S and Wagner, K. 1994. 'Human Capital and Productivity in Manufacturing during the Twentieth Century: Britain, Germany and the United States'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1036