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Working Papers

Melting Opportunities: Technological Change and Labor Market Perspectives

Erik Haustein (2025),
SSRN , Helmut Schmidt Universität / HWWI.

This paper examines the spread of electric refrigerators in U.S. households as a technological shock that replaced manual labor in ice retailing during the 1930s. Households initially used iceboxes for refrigerated food preservation, requiring regular replenishment of ice blocks and delivery by iceman. With the advent of electric refrigeration, such as the Monitor Top, ice blocks became obsolete, and the ice retail industry faced declining demand, leading to its dissolution. The focus of this study is on the long-run consequences for incumbents of the ice retail industry and their sons. The empirical results indicate that the general spread of electric refrigeration increased the likelihood of incumbents not only leaving ice retailing, but also changing occupations. These new occupations were often paid around 12% less. Differentiating by fathers’ self-employment status reveals that business owners adapted within the ice retailing industry, while dependent employees sought their fortunes outside of it. The technological shock had intergenerational spillover effects, particularly for younger cohorts of sons who faced a tradeoff between labor market participation and school attendance, leading to a decline in school attendance rates.

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