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The rapid industrialization occurring from the late 19th century into the early 20th century provides the opportunity to study the impacts it brought for American life. Specifically, this paper investigates how changes in labor productivity from the rise of industrialization impacted total, personal, and corporate income per capita at the state level. Our data is from the Statistics of Income Report and the Statistical Abstract of the United States which is used to collect information spanning from 1899-1940 across 49 U.S. States. Our results show a statistically significant and positive relationship between labor productivity and total, personal, and corporate income per capita. Personal income per capita has the highest coefficient, showing that workers benefited more from the increase in labor productivity than corporations.

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industrialization, labor productivity, income, manufacturing, 20th century, states, salary, United States, production

Early 20th Century Industrialization: Equitable Income Growth Through Manufacturing Productivity Improvement