Labor income inequality in pre-industrial Mediterranean Spain: The city of Murcia in the 18th century

Information about the income distribution in pre-industrial societies is sparse. We analyze labor income inequality in 18th century Murcia, a city in Mediterranean Spain. The historical income distribution of this region is relatively unknown, despite it having on of the highest urbanization rates in Europe in the pre-industrial era. We first use a census conducted in the 1750s which collected information on income and occupation. We then use this income information to conduct analyses of the income distribution in the 1730s and 1780s using censuses with information about the occupational distribution. We find large changes in the distribution of occupations across the censuses. We show that our results on inequality are sensitive to assumptions regarding household composition and within-occupation distribution of income, but not to the definition of household income.     

Income inequality in central Spain, 1690–1800

This paper studies the evolution of income inequality in central Spain during the late seventeenth and eighteenth centuries, taking as case study the province of Guadalajara. The first part of the paper presents the sources and the dataset that was created to estimate income inequality using grain tithes. The second section shows that through the period grain represented the lion share of total income and therefore that it can be used as a reliable proxy. The following part of the paper introduces an analysis of income inequality in the province during the period 1690–1800 and concludes that inequality decreased during the last third of the eighteenth century. Finally the paper addresses this unexpected result and concludes that it was consequence of the success of the land reform carried out by the central government in the late 1760s. The reform was a success in Guadalajara, thanks to the characteristics of its population and the lack of bargaining power of pressure groups.     

Real inequality in the early modern Low Countries: the city of ’s‐Hertogenbosch, 1500–1660

This article studies the welfare effects of economic growth in the early modern Low Countries. It applies the recently developed concept of ‘real inequality’ to a case study of sixteenth‐ and seventeenth‐century ’s‐Hertogenbosch in the Southern Netherlands and demonstrates, by incorporating relative price movements, that specific (and in this case stagnant) nominal income inequality trajectories may disguise underlying shifts in real inequality that are influenced by socially biased relative prices. The analysis is then extended to include changes in demography and household size, which reveals a second important limitation in the study of long‐term economic inequality. In contrast to the stagnation and eventual decline in nominal inequality seen in ’s‐Hertogenbosch during the long sixteenth century (1500–1650), this broadened concept of ‘augmented’ real inequality in fact suggests the occurrence of a significant upturn during the first half of the sixteenth century. Furthermore, while nominal inequality had decreased, real inequality appears to have been higher by the middle of the seventeenth century than it had been around 1500. The study of global and/or long‐term inequality, in particular, would benefit greatly from a proper social, economic, and historical contextualization of these trends, not least in terms of the social biases in relative prices and household composition.     

Domestic service,gender, and wages in rural England,c.1700–18601

Domestic service was a vital occupational sector in England in the eighteenth and nineteenth centuries—particularly for women. This article uses a new series of wage observations from across England, focusing on rural areas. Analysis of the dataset shows that wages paid to servants in rural England slightly increased over the period considered, but at uneven rates dependent on region and precise occupation of servant. The majority of servants, particularly maids, did not experience any significant increase in the wages they were paid. This article also shows a widening wage gap between male and female servants. When differences between regions were analysed, it was shown that the wages paid to servants did not match the model of the north becoming the high wage zone of England by the mid‐nineteenth century, although rates of growth there were the highest. For servants the south generally remained an area of higher wages even in the mid‐nineteenth century. Geography was probably not the key variable in determining wage levels. The type of household in which a servant was employed was more important than where it was located. The most important variables were the servants' gender, and their occupations in the household.     

The Influence of Demographics and Household-Specific Price Indices on Consumption-Based Inequality and Welfare: A Comparison of Spain and the United States

Previous research has suggested that inequality is lower in Spain than in the United States when it is based on income. For the present article, both inequality and social welfare are examined, with household consumption expenditures used as a proxy for household welfare. For tractability, equivalence scales depended only on the number of people in the household. Household-specific price indices were used to express the 1990-1991 expenditure distributions in 1981 and 1991 winter prices. Our results reveal that inequality and welfare comparisons are drastically different for smaller and larger households. When all households are considered, the two-country comparison suggests that the income inequality ranking can only be maintained for expenditure distributions when economies of scale are small or nonexistent. However, welfare is always higher in the United States than in Spain. Because inflation during the 1980s in both countries was essentially distributionally neutral, all results appear to be robust to the choice of time period.     

The high wage economy and the industrial revolution: a restatement

This article responds to Humphries's critique of Allen's assessment of the high wage economy of eighteenth‐century Britain and its importance for explaining the industrial revolution. New evidence is presented to show that women and children participated in the high wage economy. It is also shown that the high wage economy provides a good explanation of why the industrial revolution happened in the eighteenth century by showing that increases of women's wages around 1700 greatly increased the profitability of using spinning machinery. The relationship between the high wage economy of the eighteenth century and the inequality and poverty in Britain in the nineteenth century is explored.     

Long‐term trends in economic inequality: the case of the Florentine state,c. 1300–1800

This article provides an overview of economic inequality, particularly of wealth, in the Florentine state (Tuscany) from the early fourteenth to the late eighteenth century. Regional studies of this kind are rare, and this is only the second‐ever attempt at covering such a long period. Consistent with recent research conducted on other European areas, during the early modern period we find clear indications of a tendency for economic inequality to grow continually, a finding that for Tuscany cannot be explained as the consequence of economic growth. Furthermore, the exceptionally old sources we use allow us to demonstrate that a phase of declining inequality, lasting about one century, was triggered by the Black Death from 1348 to 1349. This finding challenges earlier scholarship and significantly alters our understanding of the economic consequences of the Black Death.     

Urban inoculation and the decline of smallpox mortality in eighteenth‐century cities—a reply to Razzell

Smallpox was probably the single most lethal disease in eighteenth‐century Britain but was reduced to a minor cause of death by the mid‐nineteenth century due to vaccination programmes post‐1798. While the success of vaccination is unquestionable, it remains disputed to what extent the prophylactic precursor of vaccination, inoculation, reduced smallpox mortality in the eighteenth century. Smallpox was most lethal in urban populations, but most researchers have judged inoculation to have been unpopular in large towns. Recently, however, Razzell argued that inoculation significantly reduced smallpox mortality of adults and older children in London in the last third of the eighteenth century. This article uses demographic evidence from London and Manchester to confirm previous findings of a sudden fall in adult smallpox mortality and a rise in the importance of smallpox in early childhood c. 1770. The nature of these changes is consistent with an increase in smallpox transmission in London and Manchester after 1770 and indicates that smallpox inoculation was insufficient to reduce smallpox mortality in large towns. It remains unclear whether inoculation could have operated to enhance smallpox transmission or whether changes in the properties of the smallpox virus drove the intensification of smallpox mortality among young children post‐1770.     

GDP in the Dutch Cape Colony: The National Accounts of a Slave‐Based Society

New estimates of the gross domestic product of the Dutch Cape Colony (1652‐1795) suggest that the Cape was one of the most prosperous regions during the eighteenth century. This stands in sharp contrast to the perceived view that the Cape was an “economic and social backwater,” a slave economy with slow growth and little progress. Following a national accounts framework, we find that Cape settlers' per capita income is similar to the most prosperous countries of the time – Holland and England. We trace the roots of this result, showing that it is partly explained by a highly skewed population structure and very low dependency ratio of slavery, and attempt to link the eighteenth‐century Cape Colony experience to twentieth‐century South African income levels.     

Wealth inequality in Sweden, 1750–1900†

This article examines the evolution of wealth inequality in Sweden from 1750 to 1900, contributing both to the debate on early modern and modern inequality and to the general debate on the pattern of inequality during industrialization. The pre‐industrial period (1750–1850) is for the first time examined for Sweden at the national level. The study uses a random sample of probate inventories from urban and rural areas across the country, adjusted for age and social class. Estimates are provided for the years 1750, 1800, 1850, and 1900. The results show a gradual growth in inequality as early as the mid‐eighteenth century, with the sharpest rise in the late nineteenth century. Whereas the early growth in inequality was connected to changes in the countryside and in agriculture, the later growth was related to industrialization encompassing both compositional effects and strong wealth accumulation among the richest. The level of inequality in Sweden in 1750 was lower than for other western European countries, but by 1900 Sweden was just as unequal.     

‘Th'ancient Distaff’ and ‘Whirling Spindle’: measuring the contribution of spinning to household earnings and the national economy in England, 1550–17701

The purpose of this article is to estimate the workforce involved in spinning from the late sixteenth century until the eve of mechanization. In addition, the potential contribution to family earnings from spinning will be examined. Just about all of the millions of yards of woollen yarn that went into making English cloth had to be spun by women and children, but this activity has not been investigated to the extent that it deserves. Spinning was a skilled occupation where there was a great demand for the best quality product. Sources exist which make it possible to make general estimates of the amount of spinning needed in the economy, and its cost. This evidence shows that employment in spinning increased dramatically from the late seventeenth century, and continued to increase until there were probably over one million women and children employed in spinning by the mid‐eighteenth century. In addition earnings increased to the extent whereby earnings from spinning could contribute over 30 per cent of household income for poorer families. This has implications for looking at trends in real wages over time, as well as for the concept of the industrious revolution.     

A stakeholder empire: the political economy of Spanish imperial rule in America1

This article revises the traditional view of Spain as a predatory colonial state that extracted revenue from natural resources and populations in the Americas while offering little in return. Using eighteenth‐century Spanish American treasury accounts, we show that local elites exerted important control not only over revenue collection, as previously argued by the authors, but also over expenditure allocation. The Spanish colonial state developed into a stakeholder model, in which local interests were deeply invested in the survival and expansion of empire. The means of co‐optation were intra‐colonial transfers, as well as credit relations between the state and colonial individuals and corporations, which guaranteed that much of colonial revenue was immediately fed back into the local economy, while minimizing enforcements costs. By allowing stakeholder control of both revenue and expenditure, Spain managed to avoid the problems faced by France, where royal control of expenditure clashed with partial elite control of revenue‐raising.     

Nutrition in the English agricultural labourer's household over the course of the long nineteenth century

The welfare of agricultural labourers has recently received renewed interest in both establishing living standards for a baseline group over the long term, and assessing the energy available for increased physical labour in the eighteenth century. Disagreement persists. This article examines a key aspect of agricultural labourers' families' welfare: nutrient consumption. We utilize datasets of the diets of agricultural labourers' households for 1787–96, 1835–46, 1863, 1893, and 1912, to analyse the availability of calories and 11 key nutrients. Self‐provisioned foodstuffs are incorporated and adjustments are made for beer consumption. Deficiency is computed against household needs. The results corroborate the general levels of calorie availability identified in agricultural production accounts for the late eighteenth and early nineteenth centuries and assess these as sufficient for productive agricultural labour. However, no improvement is found in the nutritional aspect of household welfare between 1787–96 and 1835–46, thus endorsing pessimistic views of living standards for this group over this time period. Gains were evident in the next half‐century, but these improvements were neither consistent nor dramatic and left a large minority of these households with nutrient deficiencies even in the twentieth century.     

Income distribution in the mirror of height differences: The case of Spain 1895–1950

Changes in the differences of heights among social groups could indicate shifts in income inequality. However, they can result from other factors as well. This article discusses which factors are these and, hence, which variables should we control for before taking height differences as a proxy for income inequality. An application to Spain from late nineteenth to mid-twentieth century seems to sustain the authors' contentions, and provide some conclusions for this country and time period. Given the scarcity of data on family incomes, this method could prove valuable for the study of the long-run evolution of income distribution in other countries.     

Women's work and structural change: occupational structure in eighteenth‐century Spain

This article uses the declarations of householders in the Cadaster of Ensenada (1750–5) to calculate labour participation rates for women and men from 22 localities in inland Spain. The article establishes the actual levels of women's market activity, which are much higher than commonly assumed. This unique source also makes it possible to analyse the region's occupational structure. Due to the labour‐intensive character of manufacturing work, the abundant supply of cheap labour, the diffusion of cottage industries, and the demand for commodities from internal and colonial markets, a large portion of the region's population worked in manufactures in the eighteenth century. This finding challenges standard interpretations of the Spanish economy at this time as mostly agricultural, which rely on sources that exclude women workers. Most workers in the manufacturing sector were women, and their market activity was concentrated in textile manufacturing. Once women are included in the analyses, the industrial share of employment follows a U‐shaped trajectory from the eighteenth century to the twentieth century. The article concludes that the standard interpretation of structural change, based solely on empirical evidence for male workers, gives a misleading picture of when, where, why, and how structural change occurred.     

Structural change in the Dutch trade with the baltic in the eighteenth century

Abstract

Affluence easily veils failure and cripples creativity. In the eighteenth century, the Dutch Republic probably enjoyed the world's highest national per capita income. The Republic was the first state to ascend beyond the modest pre-industrial income levels, interestingly enough without itself industrializing. Yet, economically the Republic stagnated visibly. Ships on the international routes increasingly passed Amsterdam by and trade — the old foundation of prosperity — declined in the midst of a general revival of North and West European commerce. The stagnation affected all walks of economic life and created a feeling of resignation that baffled many attempts at redress.¹ The fascination with the fate of the Dutch Republic in the eighteenth century arises in part from this juxtaposition of affluence and decay. Did structural change cause the decline of Dutch trade or was it precisely the want of structural adjustments that became fatal? There is a great deal of confusion in Dutch historiography on this issue. Johan de Vries — to start with the Nestor among the historians of the Dutch decline — speaks of ‘structural alterations in the trade’ that ultimately undermined the position     

Marital fertility and wealth during the fertility transition: rural France, 1750–1850

It has been long established that the demographic transition began in eighteenth‐century France, yet there is no consensus on exactly why fertility declined. This analysis links fertility life histories to wealth at death data for four rural villages in France, 1750–1850. For the first time, the wealth–fertility relationship during the onset of the French fertility decline can be analysed. Where fertility is declining, wealth is a powerful predictor of smaller family size. This article argues that fertility decline in France was a result of changing levels of economic inequality, associated with the 1789 Revolution. In cross‐section, the data support this hypothesis: where fertility is declining, economic inequality is lower than where fertility is high.     

‘The city has been wronged and abused!’: institutional corruption in the eighteenth century

Corruption by office holders in eighteenth‐century British institutions, from state to local level, played an instrumental role in the emergence of modern bureaucracy, and the development of accountable, professionalized systems of administration. Due to the similarities between the institutional culture of eighteenth‐century Britain and those within many contemporary developing societies, social scientists have also sought to draw lessons from Britain's historical experience of corruption. Yet little is known about the extent, impact, and causes of corruption by eighteenth‐century office holders. This article presents the first detailed research into the topic. It utilises the rich administrative and financial records associated with the institution charged with funding and undertaking the maintenance of London Bridge—the Bridge House—to conduct a systematic qualitative and quantitative study of corruption by office holders. The article identifies an ingrained culture of corruption amongst Bridge House officers, and provides quantitative evidence of the substantial impact corruption had on the organization's finances. However, contrary to existing studies on corruption, this article concludes that, although extensive and significant, corruption did not perform a functional role in the context of this institution. The article also provides a methodology and comparator for future studies into this topic.     

Income versus Consumption Inequality in Korea: Evaluating Stochastic Dominance Rankings by Various Household Attributes

Using four rounds (1999, 2002, 2005 and 2008) of the Korean Labor and Income Panel Study, the present paper examines determinants of household income and consumption levels and inequalities. Unconditional as well as conditional stochastic dominance tests are performed by year, by household heads’ characteristics (age, education, gender, health, marital status and occupation) and by household characteristics (household type, household size and degree of urbanization). Mean least squares regression techniques are used to predict conditional expectations. The residuals containing effects for each characteristic conditional on the remaining characteristics are then used for the stochastic dominance analysis employing extended Kolmogorov–Smirnov tests of first‐order and second‐order dominance in distribution of income and consumption. The results provide a detailed and up‐to‐date picture of inequality and poverty by subgroup in Korea, which helps in targeting particularly vulnerable groups. While inequality in disposable income is found to be substantial, consumption inequality is less substantial. Households headed by the elderly, the uneducated, the divorced, the widowed, females, and those with health problems are found to be the most vulnerable groups.