Electrifying equality: How electricity adoption boosted inclusive growth in early 20th century Sweden

When new general-purpose technologies like AI emerge, both techno-optimists and techno-pessimists predict that inequality will increase among the labour force. This column studies the rapid introduction of electricity in early 20th century Sweden and its effect on workers. The transformative technology benefitted those at the bottom of the income distribution, resulting in higher incomes, lower inequality, and new occupations accessible to workers with only a primary education. However, it is important to invest in high-quality basic education and skills development to ensure that workers can adapt to and benefit from technological change.