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Deviant behaviour? Inequality in Portugal 1565–1770

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  • Jaime Reis

    (Universidade de Lisboa)

Abstract

This study offers an estimate of Portuguese income inequality over a period of more than 200 years. It is presented in three widely spaced benchmarks: 1565, 1700 and 1770. This entirely new index is based in large measure on a little-researched annual personal income tax (décima) instituted in 1641. It covered all social classes, including nobility and clergy and every form of household earnings, and permits therefore a singularly accurate measure. It allows us to conclude that, in contrast with early modern Europe in general, Portugal experienced a notable decline in economic inequality. Several freshly minted quantitative indicators enable us to conclude that the burden of the explanation for this apparently ‘deviant’ behaviour can be ascribed to changes in the functional distribution of income. Significant transformations in Portuguese agriculture—towards labour-intensive products like maize and wine—permanently shifted the wage–rental ratio in favour of labour. The skill premium fell but its contribution was relatively modest. It was a time of sustained economic growth, but this was not associated with pronounced urbanization or industrialization.

Suggested Citation

  • Jaime Reis, 2017. "Deviant behaviour? Inequality in Portugal 1565–1770," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(3), pages 297-319, September.
    • Handle: RePEc:spr:cliomt:v:11:y:2017:i:3:d:10.1007_s11698-016-0152-7
    DOI: 10.1007/s11698-016-0152-7
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    3. Ceylan, Pinar, 2022. "Measuring and explaining rural inequality in a pre-industrial setting: income inequality in sixteenth-century Ottoman Manisa," Economic History Working Papers 117250, London School of Economics and Political Science, Department of Economic History.
    4. Alfani, Guido & Di Tullio, M & Fochesato, M, 2020. "The determinants of wealth inequality in the Republic of Venice (1400-1800)," CAGE Online Working Paper Series 483, Competitive Advantage in the Global Economy (CAGE).

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    More about this item

    Keywords

    Inequality; Early modern; Portugal; Kuznets curve; Factor-price ratios;
    All these keywords.

    JEL classification:

    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913

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