We analyze factors explaining the very different patterns of industrialization across the 42 counties of England … between 1760 and 1830. Against the widespread view that high wages and cheap coal drove industrialization, we find that … industrialization was restricted to low wage areas, while energy availability (coal or water) had little impact Instead we find that …

successful industrialization occurs in regions that start with low wages and high mechanical skills, and show that these two … contrast, literacy and access to capital have no power in predicting industrialization, nor does proximity to coal. Although …