The Long-run Impact of the Dissolution of the English Monasteries

Abstract: We examine the long-run economic impact of the Dissolution of the English monasteries in 1535 during the Reformation. Since monastic lands were not encumbered by inefficient types of customary tenures linked to feudalism, the event provides variation is the longevity of feudal institutions which is plausibly linked to labor and social mobility, the productivity of agriculture and ultimately the location of the Industrial Revolution. We show that parishes impacted by the Dissolution subsequently had a greater share of the population working outside of agriculture, experienced a `rise of the gentry', higher investment, innovation and productivity in agriculture, and eventually higher levels of industrialization. Our results are consistent with an explanation of the Industrial Revolution which emphasizes the commercialization of society as a key pre-condition for taking advantage of technological change and new economic opportunities.