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Human Capital and Technological Transition: Insights from the U.S. Navy

Published online by Cambridge University Press:  13 September 2011

Darrell J. Glaser  and
Ahmed S. Rahman
Darrell J. Glaser*
Affiliation:
Assistant Professors, Department of Economics, United States Naval Academy, 589 McNair Road, Annapolis, MD 21402. E-mails: [email protected]
Ahmed S. Rahman*
Affiliation:
Assistant Professors, Department of Economics, United States Naval Academy, 589 McNair Road, Annapolis, MD 21402. E-mails: [email protected].
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Abstract

We explore the effects of human capital on workers during the latter nineteenth century by examining the U.S. Navy. Naval officers belonged either to a regular or an engineer corps and had tasks assigned for their specialized training. We compile education and career data for officers from Naval Academy and navy registers for the years 1858 to 1907. Wage premia for “engineer-skilled” officers deteriorated over their careers; more traditionally skilled officers enjoyed higher gains in earnings and more frequent promotions. This compelled those with engineering skills to leave the service early, hindering the navy's capacity to further technologically develop.

Type
ARTICLES
Information
The Journal of Economic History , Volume 71 , Issue 3 , 13 September 2011 , pp. 704 - 729
Copyright
Copyright © The Economic History Association 2011

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