Just published w. @rowenagray6 & @nichiflu @ELSFinance. In the US, technology played a causal role in enabling workers to move away from agriculture and into manufacturing. Structural transformation is not just about rising incomes. http://t.author.email.elsevier.com/r/?id=ha43099f,cf60bed,cf60bef&utm_campaign=STMJ_AUTH_SERV_PUBLISHED&utm_medium=email&utm_acid=100506610&SIS_ID=&dgcid=STMJ_AUTH_SERV_PUBLISHED&CMX_ID=&utm_in=DM101242&utm_source=AC_&p1=S0927537120301482 1/7

We use US Census data from 1910-1940 to examine the impact of electrification on the county-level structure of employment by occupation and industry. We proxy electrification with the length of high-voltage power lines & instrument it with hydroelectric potential. 2/7

Electrification significantly decreased the share of farmers among American men & increased the share of operatives. Electrification can explain 54% of the increase in the share of operatives, and 26% of the decline in the share of farmers between 1910 and 1940. 3/8

Electrification significantly decreased the share of American men employed in agriculture and increased the share of men employed in manufacturing. Electrification can account for 24% of the decline in agriculture and 36% of the increase in manufacturing. 4/7

The increase in the share of operatives entirely occurred in counties that were rural in 1910 rather than in urban counties. This highlights how important a role electrification plays in transforming economic activity in rural areas. 5/7

Our findings help inform policy in developing countries where electrification is seen as a path to development (World Bank, 2005). Ethiopia is a leading example of a developing nation recently investing heavily in electricity. Fried and @LagakosDavid (2017) 6/7

Examining the impact of this earlier major general purpose technology on the labor market over the long run can also allow us to gain insights on the potential impacts of the most recent general purpose technology, information and communication technologies (ICT). 7/7