[[{“value”:”In the Austrian-Hungarian Empire during World War I: In order to obtain the required manpower, the armaments manufacturers began to pay their workers higher wages. This had an almost instant impact on other businesses and firms, which could not compete with the wages of the armaments industry and were thus unable to find any workers.
The post Are higher wages in wartime just capital consumption? appeared first on Marginal REVOLUTION.”}]]
In the Austrian-Hungarian Empire during World War I:
In order to obtain the required manpower, the armaments manufacturers began to pay their workers higher wages. This had an almost instant impact on other businesses and firms, which could not compete with the wages of the armaments industry and were thus unable to find any workers. In the Wöllersdorf armaments factory, for example, the number of male workers increased five-fold from August to the end of December 1914, but a construction firm that was suppposed to build new aircraft engine hangars had to appeal to the War Ministry because it could no longer find any workers.
That is from p.202 of Manfried Rauchensteiner, The First World War and the End of the Habsburg Monarchy, 1914-1918. That is by the way an excellent book, gripping throughout despite its length.
The post Are higher wages in wartime just capital consumption? appeared first on Marginal REVOLUTION.
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