No . 327 Part - Year Operation in 19 th Century American Manufacturing : Evidence from the 1870 and 1880 Censuses

The growth of manufacturing was central to the economic development of nineteenth century America. In the early stages of industrialization, the commitment to produce was frequently seasonal or part-time, and establishments might shut down operations for weeks or months at a time. But, as transportation improved and markets widened in their geographic scope and, as technological and organizational change created economic incentives for more continuous operation, it is generally believed that a growing share of establishments operated on a full-time equivalent basis throughout the year. In turn, a greater likelihood of full-year operation may have enhanced the rate of investment and/or the pace of technological change in manufacturing, providing an engine for endogenous growth.1