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The end of destitution: Evidence from British working households 1904-1937

  • Ian Gazeley


    (Department of History, University of Sussex)

  • Andrew Newell


    (Department of Economics, University of Sussex)

This paper estimates and investigates the reduction, almost to elimination, of absolute poverty among working households in Britain between 1904 and 1937. To do this, it exploits two newly-digitised data sets. The paper is a statistical generalisation, to working families in the whole of Britain, of the finding that absolute poverty declined dramatically over the early part of the twentieth century in the towns studied by, among others, Bowley and Rowntree. The paper offers a number of pieces of corroborative evidence that support the estimates. It simulates a decomposition of the poverty reduction into the effects of three proximate causes. The first two causes are the decline in family size and the rise of real wages and these were of roughly equal importance for poverty reduction. The third cause is a decline in wage inequality, but this is of relatively minor importance for poverty reduction among working households. It concludes with a discussion of deeper causes.

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Paper provided by Department of Economics, University of Sussex in its series Working Paper Series with number 0210.

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Date of creation: Jun 2010
Date of revision:
Handle: RePEc:sus:susewp:0210
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  1. Erich Battistin & Richard Blundell & Arthur Lewbel, 2007. "Why is Consumption More Log Normal Than Income? Gibrat's Law Revisited," Boston College Working Papers in Economics 671, Boston College Department of Economics.
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