Life‐cycle living standards of male‐headed households: Evidence from Stockholm, 1800–80

Recent research in economic history argues for using a household life cycle standard‐of‐living approach that includes the income and expenses of all household members and considers fluctuations in the household over the life course. This study builds on that approach by empirically examining the development of living standards in male‐headed households in Stockholm 1800–80, linking individuals and their households in the tax records throughout the life cycle. We compile a random sample of approximately 400 male‐headed households to examine how living standards developed and whether they were able to save to mitigate income decline in old age. Distinguishing between manual‐ and non‐manual‐worker households, this study finds that the manual‐worker household size outgrew income in early adulthood, creating a temporary downturn in welfare ratios. Living standards rose in subsequent stages but declined again when the head of the household approached old age. Manual‐worker households suffered a more pronounced decline in income during these later years than non‐manual‐worker households. The latter had better opportunities to smooth consumption over the life cycle by setting money aside, although manual‐worker households that survived into old age had some capacity for small savings, which may have eased but not offset the decline.