Transition to modern growth in Great Britain: The role of technological progress, adult mortality and factor accumulation.

• We propose a two-sector growth model inspired by unified growth theory, which captures the crucial phenomena of structural change and changes in adult survival rate along the Industrial Revolution. • We estimate the individual contribution of technological progress, adult mortality, workforce, and the accumulation of fixed and human capital to the overall growth of Great Britain's economy during the period 1541–1914. • We find a U-shaped relationship between adult survival and income per worker. • We find a crucial and complex role of adult survival on the transition between regimes. • We find that the accumulation of fixed capital is the driving force behind the transition from a Malthusian to a pre-modern regime. This paper proposes a framework inspired by the Unified Growth Theory and by the literature on structural change to assess the contribution of technology, adult mortality, workforce, and physical and human capital accumulation to the transition from Malthusian stagnation to modern growth. A calibrated version of the model is capable of reproducing the dynamics of Great Britain's (i.e. England, Wales and Scotland) economy during the period 1541–1914, matching both the timing of transition and the pattern of the main macroeconomic and demographic variables. Technological progress emerges as the prime mover until 1850, while thereafter the reduction in adult mortality and factors accumulation play the major role. [ABSTRACT FROM AUTHOR]