The British labour market 1855-1939 : a quantitative approach

This thesis examines the pattern and level of unemployment in the British Economy from 1855 to 1913. The structure of and variations in supply and demand for labour and unemployment are examined using data mostly from published sources. Various models are discussed and tested on the data using the standard techniques of regression analysis. It is found that the pre first world war labour market can be described as free of major institutional and structural distortions, adjusting via a series of short run equilibria to a long run equilibrium. It is argued that the interwar labour market should be depicted as failing to adjust and suffering continuous excess supply of labour. In this context, the supply side role for the effect of unemployment benefits is limited and the mal-distribution of unemployment across industries and regions is a consequence, rather than a cause of unemployment. It is argued that, under such conditions, there would have been scope for demand management policies and these would have involved both public spending and exchange rate policies