GDP per capita or real wages? Making sense of conflicting views on pre-industrial Europe
AbstractThis paper studies the apparent inconsistency between the evolution of GDP per capita and real wages in pre-industrial Europe. We show that these two measures will diverge when any of the three following factors are present: changes in income distribution, changes in labour supply per capita and changes in relative prices. We propose a methodology for measuring the effects of these three factors and apply it to the case of 18th century England. For this particular episode the gap between the growth of GDP per capita and real wages can be successfully explained and the main explanatory factor is changes in labour supply per capita. Some further conclusions are drawn from the experience of England during the 19th century and Europe during the early modern period.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Explorations in Economic History.
Volume (Year): 45 (2008)
Issue (Month): 2 (April)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622830
Other versions of this item:
- Luis Angeles, 2007. "GDP per capita or Real Wages? Making sense of coflicting views on pre-industrial Europe," Working Papers 2007_11, Business School - Economics, University of Glasgow.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Feinstein, Charles H., 1998. "Pessimism Perpetuated: Real Wages and the Standard of Living in Britain during and after the Industrial Revolution," The Journal of Economic History, Cambridge University Press, vol. 58(03), pages 625-658, September.
- Gregory Clark & Gillian Hamilton, 2006.
"Survival of the Richest: The Malthusian Mechanism in Pre-Industrial England,"
615, University of California, Davis, Department of Economics.
- Clark, Gregory & Hamilton, Gillian, 2006. "Survival of the Richest: The Malthusian Mechanism in Pre-Industrial England," The Journal of Economic History, Cambridge University Press, vol. 66(03), pages 707-736, September.
- Robert Allen & Robert C. Allen, 2007. "Wages, Prices, and Living Standards in China, Japan, and Europe, 1738-1925," Economics Series Working Papers 316, University of Oxford, Department of Economics.
- N. F. R. Crafts, 1983. "British Economic Growth, 1700-1831: A Review of the Evidence," Economic History Review, Economic History Society, vol. 36(2), pages 177-199, 05.
- Hoffman, Philip T. & Jacks, David S. & Levin, Patricia A. & Lindert, Peter H., 2002. "Real Inequality In Europe Since 1500," The Journal of Economic History, Cambridge University Press, vol. 62(02), pages 322-355, June.
- Allen, Robert C., 2001. "The Great Divergence in European Wages and Prices from the Middle Ages to the First World War," Explorations in Economic History, Elsevier, vol. 38(4), pages 411-447, October.
- de Vries,Jan & van der Woude,Ad, 1997. "The First Modern Economy," Cambridge Books, Cambridge University Press, number 9780521578257, December.
- Gregory Clark, 2007. "The long march of history: Farm wages, population, and economic growth, England 1209-1869 -super-1," Economic History Review, Economic History Society, vol. 60(1), pages 97-135, 02.
- van Zanden, Jan L., 1999. "Wages and the standard of living in Europe, 1500 1800," European Review of Economic History, Cambridge University Press, vol. 3(02), pages 175-197, August.
- Lindert, Peter H. & Williamson, Jeffrey G., 1982. "Revising England's social tables 1688-1812," Explorations in Economic History, Elsevier, vol. 19(4), pages 385-408, October.
- N. F. R. Crafts & C. K. Harley, 1992. "Output growth and the British industrial revolution: a restatement of the Crafts-Harley view," Economic History Review, Economic History Society, vol. 45(4), pages 703-730, November.
- de Vries, Jan, 1994. "The Industrial Revolution and the Industrious Revolution," The Journal of Economic History, Cambridge University Press, vol. 54(02), pages 249-270, June.
- Clark, Gregory & Werf, Ysbrand Van Der, 1998. "Work in Progress? The Industrious Revolution," The Journal of Economic History, Cambridge University Press, vol. 58(03), pages 830-843, September.
- Roy, Tirthankar, 2011.
"Consumption of cotton cloth in India, 1795-1940,"
CEPR Discussion Papers
8669, C.E.P.R. Discussion Papers.
- Mark Koyama, 2009.
"The Price of Time and Labour Supply: From the Black Death to the Industrious Revolution,"
Oxford University Economic and Social History Series
_078, Economics Group, Nuffield College, University of Oxford.
- Mark Koyama, 2009. "The Price of Time and Labour Supply: From the Black Death to the Industrious Revolution," Economics Series Working Papers Number 78, University of Oxford, Department of Economics.
- Van Leeuwen, Bas & van Leeuwen-Li, Jieli & Foldvari, Peter, 2012. "Education as a driver of income inequality in twentieth-century Africa," MPRA Paper 43574, University Library of Munich, Germany.
- Mikolaj Malinowski, 2013. "East of Eden: Polish living standards in a European perspective, ca. 1500-1800," Working Papers 0043, Utrecht University, Centre for Global Economic History.
- Broadberry, Stephen & Campbell, Bruce M.S. & van Leeuwen, Bas, 2013. "When did Britain industrialise? The sectoral distribution of the labour force and labour productivity in Britain, 1381–1851," Explorations in Economic History, Elsevier, vol. 50(1), pages 16-27.
- Stephen Broadberry & Bruce Campbell & Alexander Klein & Mark Overton & Bas van Leeuwen, 2012. "British Economic Growth, 1270-1870: an output-based approach," Studies in Economics 1203, Department of Economics, University of Kent.
- Luis Angeles, . "On the causes of the African Slave Trade," Working Papers 2012_15, Business School - Economics, University of Glasgow.
- Koyama, Mark, 2012. "The transformation of labor supply in the pre-industrial world," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 505-523.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.