ABSTRACT

One of the major determinants of unemployment was the supply of labor, which was a function of demographic shifts and population distribution. Assuming that employment information was available, two crucial innovations of nineteenth-century social legislation facilitated the free, mass movement of labor: the Bauernbefreiung and the Gewerbefreiheit laws. Granting the theoretical benefits of mobility as an alternative to unemployment, there were drawbacks which made workers hesitant to move if viable options were available. Another important factor in determining the impact of population on the labor market was age. The only public unemployment relief which existed during our period was contingent upon residence of some duration. With mobility which affected population distribution, the aggregate number of workers in the labor market exercised a profound influence on unemployment levels. In addition to birth and death rates, another factor which had a decisive impact on demographic change was migration.