Labour Market Adjustment a Hundred Years Ago: The Case of the Catalan Textile Industry, 1880-1913 Articles uri icon

publication date

  • February 2008

start page

  • 1

end page

  • 25

issue

  • 1

volume

  • 61

International Standard Serial Number (ISSN)

  • 0013-0117

Electronic International Standard Serial Number (EISSN)

  • 1468-0289

abstract

  • his paper studies the way workers and firms behaved in a highly cyclical sector such as the Catalan cotton textile industry. Using firm level evidence from the late nineteenth and early twentieth centuries, the paper shows that, in spite of weak unionization and the lack of regional or local collective bargaining institutions, piece rates in cotton spinning and weaving were not subject to competitive rate cuts and remained fixed over the cycle. When facing a negative demand shock, firms adjusted by reducing output, hours of work, labour productivity, and employment. The paper finally evaluates the possible sources of wage rigidity in the industry.[Ashton prize for best article published in the Review by a young researcher in the years 2007 and 2008]