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Unreal Wages? A New Empirical Foundation for the Study of Living Standards and Economic Growth in England, 1260‐1860

Author

Listed:
  • Humphries, Jane

    (University of Oxford)

  • Weisdorf, Jacob

    (University of Southern Denmark)

Abstract

Existing measures of historical real wages suffer from the fundamental problem that workers’ annual incomes are estimated on the basis of day wages without knowing the length of the working year. We circumvent this problem by presenting a novel wage series of male workers employed on annual contracts. We use evidence of labour market arbitrage to argue that existing real wage estimates are badly off target, because they overestimate the medieval working year but underestimate the industrial one. Our data suggests that modern economic growth began two centuries earlier than hitherto thought and was driven by an ‘Industrious Revolution’.

Suggested Citation

  • Humphries, Jane & Weisdorf, Jacob, 2016. "Unreal Wages? A New Empirical Foundation for the Study of Living Standards and Economic Growth in England, 1260‐1860," CAGE Online Working Paper Series 310, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:310
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    References listed on IDEAS

    as
    1. de Vries, Jan, 1994. "The Industrial Revolution and the Industrious Revolution," The Journal of Economic History, Cambridge University Press, vol. 54(2), pages 249-270, June.
    2. Allen, Robert C., 2011. "Global Economic History: A Very Short Introduction," OUP Catalogue, Oxford University Press, number 9780199596652.
    3. 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.
    4. Vries,Jan de, 2008. "The Industrious Revolution," Cambridge Books, Cambridge University Press, number 9780521895026.
    5. Vries,Jan de, 2008. "The Industrious Revolution," Cambridge Books, Cambridge University Press, number 9780521719254.
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    Cited by:

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    2. Gary, Kathryn E. & Olsson, Mats, 2019. "Men at work: Real wages from annual and casual labour in southern Sweden 1500–1850," Lund Papers in Economic History 194, Lund University, Department of Economic History.
    3. Paolo Malanima, 2018. "Italy in the Renaissance: a leading economy in the European context, 1350–1550," Economic History Review, Economic History Society, vol. 71(1), pages 3-30, February.
    4. Elie Gray & André Grimaud & David Le Bris, 2018. "The Farmer, the Blue-collar, and the Monk: Understanding Economic Development through Saturations of Demands and Non-Homothetic Productivity Gains," CESifo Working Paper Series 6970, CESifo.
    5. Gray, Elie & Grimaud, André & Le Bris, David, 2018. "The Farmer, the Blue-collar, and the Monk: Understanding economic development through saturations of demands and non-homothetic productivity gains," TSE Working Papers 18-906, Toulouse School of Economics (TSE).
    6. MADSEN, Jakob B, 2018. "Is Inequality Increasing in r-g? The Dynamics of Capital’s Income Share in the UK, 1210-2013," Discussion paper series HIAS-E-70, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    7. Gregory Clark, 2018. "Growth or stagnation? Farming in England, 1200–1800," Economic History Review, Economic History Society, vol. 71(1), pages 55-81, February.
    8. Gary, Kathryn, 2019. "The distinct seasonality of early modern casual labor and the short durations of individual working years: Sweden 1500-1800," Lund Papers in Economic History 189, Lund University, Department of Economic History.
    9. , Stone Center & Bleynat, Ingrid & Challú, Amílcar & Segal, Paul, 2020. "Inequality, Living Standards and Growth: Two Centuries of Economic Development in Mexico," SocArXiv 9ztb7, Center for Open Science.
    10. Bleynat, Ingrid & Challú, Amílcar & Segal, Paul, 2020. "Inequality, living standards and growth: two centuries of economic development in Mexico," LSE Research Online Documents on Economics 105215, London School of Economics and Political Science, LSE Library.
    11. Gabriel Jover-Avellà & Antoni Mas-Forners & Ricard Soto-Company & Enric Tello, 2018. "Socioecological Transition in Land and Labour Exploitation in Mallorca: From Slavery to a Low-Wage Workforce, 1229–1576," Sustainability, MDPI, vol. 11(1), pages 1-26, December.

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    More about this item

    Keywords

    England; industrial revolution; industrious revolution; labour input; living standards; wages; Malthusian model. JEL Classification: J3; J4; J5; J6; J7; J8; N33;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J8 - Labor and Demographic Economics - - Labor Standards
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913

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