Labor market changes and social inclusiveness across regions: evidence from the rise of the modern office

Abstract

Could complex changes in the labor market reduce social inequalities across regions? We study the rise of office employment in the early twentieth century that was induced by innovations in office technology and organizational changes affecting the type of required office tasks. The new office jobs required little physical strength. We find that the regional employment share of industries that were strongly connected to the modern office, is positively linked to labor force participation of people with physical impairments. The positive employment effect is more visible for disabled men. In sum, the rise of the modern office that differed across regions started to lower labor market entry barriers and fostered social inclusiveness.