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Institutions, Wages and Inequality : The Case of Europe and its Periphery (1500-1899)

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  • Davin Chor

    (SMU)

Abstract

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.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Microeconomics Working Papers with number 22065.

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Date of creation: Jan 2005
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Handle: RePEc:eab:microe:22065

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Keywords: institutions; Wage inequality; European cities;

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  1. Williamson Jeffrey G., 1995. "The Evolution of Global Labor Markets since 1830: Background Evidence and Hypotheses," Explorations in Economic History, Elsevier, vol. 32(2), pages 141-196, April.
  2. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, vol. 9(3), pages 271-303, 09.
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  8. Davin Chor, 2005. "Institutions, Wages and Inequality : The Case of Europe and its Periphery (1500-1899)," Microeconomics Working Papers 22065, East Asian Bureau of Economic Research.
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  12. zmucur, S leyman & Pamuk, Sevket, 2002. "Real Wages And Standards Of Living In The Ottoman Empire, 1489 1914," The Journal of Economic History, Cambridge University Press, vol. 62(02), pages 293-321, June.
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  16. 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.
  17. Abhijit V. Banerjee & Esther Duflo, 2000. "Inequality and Growth: What Can the Data Say?," NBER Working Papers 7793, National Bureau of Economic Research, Inc.
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Cited by:
  1. Davin Chor, 2005. "Institutions, Wages and Inequality : The Case of Europe and its Periphery (1500-1899)," Microeconomics Working Papers 22065, East Asian Bureau of Economic Research.
  2. Ulrich Pfister & Georg Fertig, 2010. "The population history of Germany: research strategy and preliminary results," MPIDR Working Papers WP-2010-035, Max Planck Institute for Demographic Research, Rostock, Germany.

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