Food prices and the standard of living in London in the ‘century of revolution’, 1580‐1700

This article presents a new price series for seventeenth‐century London and uses the data to construct the first cost of living index for the capital for that period. Comparison with the Phelps Brown Hopkins (PBH) series suggests that although short‐term variations were very similar, there is some suggestion that prices in London were more inflationary after the middle of the seventeenth century than in the PBH series. A new London real wage series, also presented, is consequently less buoyant than that constructed by PBH for their southern building craftsmen.     

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.     

Market wage or discrimination? The remuneration of male and female wool spinners in the seventeenth‐century Dutch Republic1

In the historical debate, the gender wage gap is usually attributed either to productivity differences or to gender discrimination. By analysing a newly constructed series of spinning wages in the seventeenth‐century Dutch Republic, the wages of male and female textile workers for the same work could be investigated. At first sight, the evidence on equal piece rates for spinning men and women seems to rule out wage discrimination. Nevertheless, more deeply rooted gender discrimination resulting from the segmented seventeenth‐century labour market restricted women's access to many professions. Exactly this segmentation determined differences in wage earning capacities between men and women.     

Prices and real wages in seventeenth‐century Madrid

This article focuses on the evolution of real wages earned by building labourers and craftsmen in Madrid during the seventeenth century. After a substantial rise brought about by the arrival of the Court in 1561, real wages experienced a remarkable fall from 1621–30 onwards. Our thesis is that the fiscal and monetary policies pursued by the Crown to fund its ambitious imperial policy exerted a clear influence on this decline. The currency manipulations of the low‐value petty coin (maravedí) drove serious losses in the real wages of building labourers and craftsmen between 1621 and 1680. In the years around 1665 the real wages of both groups had fallen below the levels of 1561–1600, and the indirect taxes levied by the Crown and the town council contributed to keeping real wages stagnant at around the low levels of 1665–80 between 1681 and 1700. Although this issue merits further research, it seems unlikely that building labourers and craftsmen could have offset the decline in their real wages through an increase in the number of hours worked or a rise in the number of work days.     

Pieces of eight,pieces of eight: seamen's earnings and the venture economy of early modern seafaring†

Historians have generally argued that between the medieval period and the eighteenth century seafarers transformed from collaborative adventurers with a share in their vessel to the first international wage‐earning proletariat. This interpretation has drawn upon relatively limited statistical analysis of mariners’ wages, and underestimates the variety of seafarers’ remuneration and economic activities besides wages themselves. This article undertakes a more sustained analysis of seventeenth‐century wage data drawn from the papers of the English High Court of Admiralty, and uses the same evidence to examine other forms of income, both customary payments as part of shipping, and small‐scale trade. Seafarers of all ranks carried their own commodities on all shipping routes, offering an opportunity to increase their income considerably. This evidence confirms that the maritime labour market was hierarchical, and that very often seafarers were poor labourers facing economic insecurity of many kinds. However, it refines the previous interpretation by emphasizing the presence of skilled workers even among the lower levels of this labour market, and by introducing a new dimension to mariners’ economic agency: they were not simply wage‐workers, but also independent participants in a venture economy.     

Establishing statistical foundations of a chronology for the great divergence: a survey and critique of the primary sources for the construction of relative wage levels for Ming–Qing China

This article is a survey and critique of recent endeavours to establish statistical foundations for a chronology for the great divergence based upon trends and levels in relative wages. Our reading of the bibliography in Chinese labour history, together with a preliminary investigation into other primary sources, suggests that the Kuznetsian paradigm for empirical economics may not be viable for the construction of analytical narratives for the Chinese and other premodern imperial economies in South and West Asia. Nevertheless, two datasets currently in print will continue to be quoted to lend support to numerically grounded speculations for levels and trends in real wages and welfare for the families of wage‐dependent urban workers in China over the eighteenth century. Statistical evidence for the Ming and Qing dynasties calibrated for the purposes of comparing real wage levels for wage‐dependent labour between China and western Europe can, however, be placed on a spectrum for accuracy and inferential analysis that runs from ‘unfounded guess work’ to ‘plausible conjectures’. The unwelcome contention of this article is that the data published and potentially available for China (and probably for India and the Ottoman Empire) stand close to the unfounded guess work end of that spectrum. Meanwhile, and as a speculative conclusion, we offer a conjecture that the ‘real wages’ for Qing China's tiny proletariat, whose income included high proportions of wages in kind, have remained as elusive as they were when the real wage debate began a decade ago.     

‘Real’ wages? Contractors,workers, and pay in London building trades, 1650–1800

Existing series suggest wages in London were higher than in other European cities from 1650 to 1800. This article presents new evidence from the construction sites that supplied the underlying wage data, and uncovers the contractual and organizational context in which they were recorded. Institutional records of wages were profoundly affected by structural changes in the seventeenth century, particularly the emergence of large‐scale building contractors. The actual wages paid to London building workers were substantially below current estimates.     

The rise and fall of Spain (1270–1850)1

Two distinctive regimes are distinguished in Spain over half a millennium. The first one (1270s–1590s) corresponds to a high land–labour ratio frontier economy, which is pastoral, trade‐oriented, and led by towns. Wages and food consumption were relatively high. Sustained per capita growth occurred from the end of the Reconquest (1264) to the Black Death (1340s) and resumed from the 1390s only broken by late fifteenth‐century turmoil. A second regime (1600s–1810s) corresponds to a more agricultural and densely populated low‐wage economy which, although it grew at a pace similar to that of 1270–1600, remained at a lower level. Contrary to pre‐industrial western Europe, Spain achieved its highest living standards in the 1340s, not by mid‐fifteenth century. Although its death toll was lower, the plague had a more damaging impact on Spain and, far from releasing non‐existent demographic pressure, destroyed the equilibrium between scarce population and abundant resources. Pre‐1350 per capita income was reached by the late sixteenth century but only exceeded after 1820.     

Wages,prices, and technology in early Catalan industrialization

Catalonia was the only Mediterranean region among the early followers of the British industrial revolution. The roots of this process can be traced back to the seventeenth and eighteenth centuries when the Catalan economy became integrated into international trade, and a successful printed calico industry concentrated in the city of Barcelona. Although the factory system was largely adopted by the cotton industry in the 1840s, the diffusion of the spinning jenny in Catalonia had occurred earlier, in the 1790s. In line with Allen, this article explores whether relative factor prices played a role in the widespread adoption of the spinning jenny in Catalonia. First, series of real wages in Barcelona are supplied for the period 1500–1808. Second, the prices of labour and capital are compared and the potential profitability of the adoption of the spinning jenny is analysed. Findings show that although Catalonia was not a high wage economy in the way that Britain was in the second half of the eighteenth century, evidence from the cotton spinning sector confirms the relevance of relative factor prices in the adoption of new technology. Within the booming cotton sector after the 1780s, high wages created strong incentives for the adoption of the labour‐saving spinning jenny.     

ANTHROPOMETRIC TRENDS IN SOUTHERN CHINA, 1830–1864

Anthropometric indicators can shed light on the ‘Great Divergence’ debate on the timing of the welfare development in China and Europe. We mobilise two new datasets of some 13,000 Southern Chinese contract migrants who were sent to Suriname and Indonesia, and thus supplement the limited existing evidence on early to mid‐nineteenth century China. The Southern Chinese were about as tall as Southern Europeans during the early and mid‐nineteenth century, but notably shorter than Northwestern Europeans. Height development was stagnant or slightly downward over the period studied, which fits into the pattern of real wage developments at that time.     

American colonial incomes, 1650–1774

New data now allow conjectures on the levels of real and nominal incomes in the 13 American colonies. New England was the poorest region, and the South was the richest. Colonial per capita incomes rose only very slowly if at all, for five reasons: productivity growth was slow; population in the low‐income (but subsistence‐plus) frontier grew much faster than that in the high‐income coastal settlements; child dependency rates were high and probably even rising; the terms of trade were extremely volatile, presumably suppressing investment in export sectors; and the terms of trade rose very slowly, if at all, in the North, although faster in the South. All of this checked the growth of colony‐wide per capita income after a seventeenth‐century boom. The American colonies led Great Britain in purchasing power per capita from 1700, and possibly from 1650, until 1774, even counting slaves in the population. That is, average purchasing power in America led Britain early, when Americans were British. The common view that American per capita income did not overtake that of Britain until the start of the twentieth century appears to be off the mark by two centuries or more.     

The geography of urbanization — Sweden and Finland,c. 1570–1770

Abstract

In this article Swedish urbanization is considered as a long term growth cycle. The urban system expanded both geographically and demographically during the seventeenth century. Many new towns were founded, and urban growth rates were generally high. Swedish urban geography was characterized by peripheral expansion mainly towards northern Sweden. At the same time there was a strong tendency towards the centralization of urban resources. The capital city, Stockholm, evolved from being a medium-sized town to becoming a city worthy of Sweden s great power status. During the eighteenth century several of the seventeenth century trends were reversed: the centralising tendency ended and indeed regressed, while general urban growth slowed down, turning into an ‘urban growth from below’. Stockholm became a stagnation metropolis' and the eastern-central part of Sweden experienced an urban setback relative to western Sweden, where several towns, including Gothenburg, profited from their close connections with the expansive markets of northern and western Europe.     

MEASURING INEQUALITY TRENDS IN COLONIAL AUSTRALIA USING FACTOR–PRICE RATIOS: THE IMPORTANCE OF BOUNDARIES

Previous research on nineteenth century globalisation argues that during the second half of that century wage–rental ratios in labour scarce, land-abundant new world economies decreased. This suggests inequality rose in the new world. Australia has been cited as a conspicuous example of this trend. The paper re-examines this argument using disaggregated land and wage data for four Australian colonies. We reveal large regional differences in both factor–price levels and trends – something that has been overlooked when discussing Australian colonial inequality and we suggest that regional disparities in other nineteenth century economies are also likely to be important.     

Engels’ pause: Technical change, capital accumulation, and inequality in the british industrial revolution

The paper reviews the macroeconomic data describing the British economy from 1760 to 1913 and shows that it passed through a two stage evolution of inequality. In the first half of the 19th century, the real wage stagnated while output per worker expanded. The profit rate doubled and the share of profits in national income expanded at the expense of labour and land. After the middle of the 19th century, real wages began to grow in line with productivity, and the profit rate and factor shares stabilized. An integrated model of growth and distribution is developed to explain these trends. The model includes an aggregate production function that explains the distribution of income, while a savings function in which savings depended on property income governs accumulation. Simulations with the model show that technical progress was the prime mover behind the industrial revolution. Capital accumulation was a necessary complement. The surge in inequality was intrinsic to the growth process: technical change increased the demand for capital and raised the profit rate and capital’s share. The rise in profits, in turn, sustained the industrial revolution by financing the necessary capital accumulation. After the middle of the 19th century, accumulation had caught up with the requirements of technology and wages rose in line with productivity.     

‘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.     

Estate management and institutional constraints in pre‐industrial England: the ecclesiastical estates of Durham,c. 1400–1640

This article explores how far estate management and institutional constraints help to explain the transformations of rural society in England from the fourteenth to the seventeenth centuries. The monks of Durham Cathedral Priory and the bishops of Durham faced many of the same exogenous pressures in the fourteenth and fifteenth centuries but they responded differently to these challenges. By the seventeenth century all of the dean and chapter's lands were consolidated holdings on 21‐year leases, whereas a confused mixture of copyhold and leasehold land had developed on the bishops' estate. This had a significant impact upon the challenges and opportunities facing their tenants. Institutional constraints were often crucial factors in the transformation of the English countryside: these two neighbouring ecclesiastical estates faced broadly the same problems and yet the composition of their estates diverged significantly across this period, having a profound effect not only on levels of rent, but also on the tenure of holdings and ultimately their relative size; three of the most important factors in the formation of agrarian capitalism. This article also argues that how rural society adapted to the fifteenth‐century recession greatly affected the ability of their sixteenth‐century counterparts to respond to inflation.     

Entrepreneurs,formalization of social ties,and trustbuilding in Europe (fourteenth to twentieth centuries)1

The establishment of trust is a key component of economic activity and social ties can make business dealings work better. However, we do not know much about how economic actors created new social ties deliberately in order to pursue their objectives. This article analyses the way in which merchants and entrepreneurs used specific rituals to establish formal social ties, with the intent of protecting their business relationships. It focuses on relational instruments that until now had been neglected, particularly godparenthood and marriage witnessing. It shows that formalization, ritualization, and publicity of ties were used by entrepreneurs to establish trust with their business associates, for example when information was asymmetric or when institutions were perceived as inefficient in guaranteeing mutual good behaviour. The analysis covers a long period, from the late middle ages to today. It pays particular attention to the consequences of the Reformation in the sixteenth and seventeenth centuries and of the industrial revolution in the nineteenth. Contrary to the received wisdom, it suggests that formal social ties such as godparenthood continued to play an important role in economic activity during and after the industrial revolution. New databases on early modern Italy and nineteenth‐century France are used.     

Urbanization and mortality in Britain,c. 1800–50

In the long-running debate over standards of living during the industrial revolution, pessimists have identified deteriorating health conditions in towns as undermining the positive effects of rising real incomes on the ‘biological standard of living’. This article reviews long-run historical relationships between urbanization and epidemiological trends in England, and then addresses the specific question: did mortality rise especially in rapidly growing industrial and manufacturing towns in the period c. 1830–50? Using comparative data for British, European, and American cities and selected rural populations, this study finds good evidence for widespread increases in mortality in the second quarter of the nineteenth century. However, this phenomenon was not confined to ‘new’ or industrial towns. Instead, mortality rose in the 1830s especially among young children (aged one to four years) in a wide range of populations and environments. This pattern of heightened mortality extended between c. 1830 and c. 1870, and coincided with a well-established rise and decline in scarlet fever virulence and mortality. The evidence presented here therefore supports claims that mortality worsened for young children in the middle decades of the nineteenth century, but also indicates that this phenomenon was more geographically ubiquitous, less severe, and less chronologically concentrated than previously argued.     

Industrialization and wage inequality in nineteenth-century urban America

What happened to wage inequality during American industrialization? This paper uses old and new data to address this question. The old data are in the form of pay ratios, while the new capture changes in the overall wage distribution, rather than in just the relative pay of workers at the top and bottom. Using payroll information from the Aldrich report for establishments in construction, railroads, and manufacturing, we calculate Theil indices for all production workers. These two data sets provide complementary information but suggest a common conclusion — namely that American wage inequality did not rise perceptibly over the nineteenth century.     

Tobacco retail licences and state formation in early modern England and Wales

This article addresses one under‐studied aspect of Charles I's finances during his Personal Rule: the licensing of tobacco retailers. While it was ultimately a failed project, the tobacco retail licence project was fiscally successful before the transformative events of the 1640s triggered its demise. The project enabled tobacco retail licensees to establish commercial outlets for the marketing of tobacco throughout England and Wales, and cooperation with pre‐existing officeholders contributed to the apprehension of unlicensed retailers. Ultimately, the geographic breadth of tobacco licences translated into much‐needed royal revenue which, when added to other projects and patents, contributed to the king's financial survival. The evidence presented here suggests that we may want to rethink some of our assumptions for how the process of state formation worked and that earlier seventeenth‐century ‘prototypes’ of taxation were more fiscally successful than previously recognized.