Europe went through equally dramatic changes after 1955. Cases 1 and 2 show that the labor effects of mechanization depend on the alternatives available to the economy. The Indian Punjab provides an opposite example. The green revolution initiated in the mid-1960s led to sharply increased demand for labor, which caused a big rise in real wages around 1968 (Gupta and Shangari 1979).
High capital costs (relative to labor) retard mechanization and lead to selective emphasis on power-intensive operations. Machinery design adjusts to high capital costs by lack of convenience features, simplicity, and reduced durability. Energy is only one of the costs of using machines. Capital and maintenance costs are often larger.