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Real Wages and Labor Productivity in Britain and Germany, 1871–1938: A Unified Approach to the International Comparison of Living Standards

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  • Broadberry, Stephen
  • Burhop, Carsten

Abstract

Throughout the period 1871–1938, the average British worker was better off than the average German worker, but there were significant differences between major sectors. For the aggregate economy, the real wage gap was about the same as the labor productivity gap, but again there were important sectoral differences. Compared to their productivity, German industrial workers were poorly paid, whereas German agricultural and service sector employees were overpaid. This affected the competitiveness of the two countries in these sectors. There were also important differences in comparative real wages by skill level, affecting the extent of poverty.

Suggested Citation

  • Broadberry, Stephen & Burhop, Carsten, 2010. "Real Wages and Labor Productivity in Britain and Germany, 1871–1938: A Unified Approach to the International Comparison of Living Standards," The Journal of Economic History, Cambridge University Press, vol. 70(2), pages 400-427, June.
    • Handle: RePEc:cup:jechis:v:70:y:2010:i:02:p:400-427_00
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    Citations

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    Cited by:

    1. Nikita I. Lychakov & Dmitrii L. Saprykin & Nadia Vanteeva, 2020. "Not Backward: Comparative Labour Productivity In British And Russian Manufacturing, Circa 1908," HSE Working papers WP BRP 199/HUM/2020, National Research University Higher School of Economics.
    2. Christian Traxler & Carsten Burhop, 2010. "Poverty and crime in 19th century Germany: A reassessment," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2010_35, Max Planck Institute for Research on Collective Goods.
    3. Uebele, Martin & Pfister, Ulrich & Riedel, Jana, 2012. "Real wages and the origins of modern economic growth in Germany, 16th to 19th centuries," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62076, Verein für Socialpolitik / German Economic Association.
    4. Kent Deng & Lucy Zheng, 2015. "Economic restructuring and demographic growth: demystifying growth and development in Northern Song China, 960–1127," Economic History Review, Economic History Society, vol. 68(4), pages 1107-1131, November.
    5. Juan Carmona & Markus Lampe & Joan Rosés, 2017. "Housing affordability during the urban transition in Spain," Economic History Review, Economic History Society, vol. 70(2), pages 632-658, May.
    6. Nikolaus Wolf, 2021. "Deutschland in der ersten Globalisierung," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 101(4), pages 254-258, April.
    7. Jeremiah Dittmar & Ralph R. Meisenzahl, 2022. "The research university, invention and industry: evidence from German history," CEP Discussion Papers dp1856, Centre for Economic Performance, LSE.
    8. Joost Veenstra & Herman Jong, 2016. "A Tale of Two Tails: Establishment Size and Labour Productivity in United States and German Manufacturing at the Start of the Twentieth Century," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 56(2), pages 198-220, July.
    9. Francesco Cinnirella & Jochen Streb, 2017. "The role of human capital and innovation in economic development: evidence from post-Malthusian Prussia," Journal of Economic Growth, Springer, vol. 22(2), pages 193-227, June.
    10. Broadberry, Stephen & Fukao, Kyoji & Zammit, Nick, 2015. "How Did Japan Catch-up On The West? A Sectoral Analysis Of Anglo-Japanese Productivity Differences, 1885-2000," CAGE Online Working Paper Series 231, Competitive Advantage in the Global Economy (CAGE).
    11. Broadberry, Stephen & Klein, Alexander, 2011. "When and why did eastern European economies begin to fail? Lessons from a Czechoslovak/UK productivity comparison, 1921-1991," Explorations in Economic History, Elsevier, vol. 48(1), pages 37-52, January.

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