Explaining contract choice: vertical coordination,sharecropping, and wine in Europe, 1850–19501

Recent literature on sharecropping has emphasized its importance in reducing problems associated with moral hazard in cultivation (in Tuscany), or providing a crucial ‘rung’ on the farm ladder (in the US south). Yet despite these and other important features, sharecropping was surprisingly absent in most regions. Using case studies associated with French wine production, this article argues that a number of factors have often been overlooked in the literature, the first of which is the need for landowners to be able to offer farms that were sufficiently large both to employ the sharecropper's family on a full‐time basis, and to allow them to produce a variety of products to minimize risk. Second, measurement problems exist with the division of the harvest, especially when quality was an important factor in determining price. Finally, the nature of vertical cooperation and integration associated with the production and marketing arrangements of individual crops suggests that landowners were not indifferent to receiving payment in cash or kind, and this affected contract choice. This article incorporates these ideas to explain not just the presence and absence of sharecropping in different geographical localities, but also the wide variety of different forms of the contract that existed in France.     

Institutions, wages, and inequality: The case of Europe and its periphery (1500–1899)

This paper explores the long-run relationship between institutions and wage outcomes in Europe and its periphery. I find that cities that exercised stronger institutional protection of private property experienced: (i) higher levels of both skilled and unskilled real wages, as well as (ii) lower levels of inequality as measured by the skilled–unskilled wage ratio. While the first result corroborates existing work on the positive growth effects of better institutions, the second finding is more novel to the literature. Some explanations are proposed for how stronger institutions can cause an increase in the relative supply of skilled workers, thus lowering wage inequality.     

The early modern great divergence: wages,prices and economic development in Europe and Asia, 1500–18001

Contrary to the claims of Pomeranz, Parthasarathi, and other ‘world historians’, the prosperous parts of Asia between 1500 and 1800 look similar to the stagnating southern, central, and eastern parts of Europe rather than the developing north‐western parts. In the advanced parts of India and China, grain wages were comparable to those in north‐western Europe, but silver wages, which conferred purchasing power over tradable goods and services, were substantially lower. The high silver wages of north‐western Europe were not simply a monetary phenomenon, but reflected high productivity in the tradable sector. The ‘great divergence’ between Europe and Asia was already well underway before 1800.     

Rural Europe reshaped: the economic transformation of upland regions, 1850–20001

Agriculture is no longer the main sector in the economy of rural Europe. Based on a comparative analysis of nine upland areas from five different countries (Scotland, Switzerland, France, Italy, and Spain), this article argues that, contrary to the claims of most social science work on ‘rural restructuring’, the decline of agriculture in the rural economy should be understood from a long‐term perspective and in relation to European industrialization, rather than as a recent process linked to postmodern dynamics. In fact, widely diverging paths of rural change during industrialization similarly imply occupational change.     

Portuguese living standards, 1720–1980, in European comparison: heights,income, and human capital1

When and why did the Portuguese become the shortest Europeans? In order to find the answer to this question, we trace the trend in Portuguese living standards from the 1720s until recent times. We find that during the early nineteenth century average height in Portugal did not differ significantly from average height in most other European countries, but that when, around 1850, European anthropometric values began to climb sharply, Portugal's did not. In a panel analysis of 12 countries, we find that delay in human‐capital formation was the chief factor hindering any improvement in the biological standard of living in Portugal.