World War I led to radical changes in the government policy of participating countries. The enormous demographic and economic disturbances caused by the war forced the governments of all the belligerent nations to drastically restrict the market freedom. In particular, the state began actively...

A shock to the sector composition of the local labor market can affect long-run economic development of a location. Because structural change ultimately shifts labor from agriculture to services, an early transition to manufacturing may hamper longrun prosperity. The identification strategy...