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Real wages at the Cape of Good Hope: A long-term perspective, 1652-1912

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  • Pim de Zwart

Abstract

Employing recently assembled wage and price data, this paper sketches the long-term development of real wages at the Cape of Good Hope, from its foundation in 1652 up to the unification of South Africa in 1910. The results show that real wages were consistently above subsistence level, and living standards were continuously improving throughout the period under discussion. The comparison with the most developed parts of Europe has shown that during the early decades of the colony’s existence, the Cape labourers had a relatively low purchasing power. Yet, by the end of the eighteenth century living standards began to close the gap, and during the nineteenth century, Cape living standards were on a par with those on the European continent. An analysis of growth rates suggests that during the second half of the seventeenth century growth was minimal. The eighteenth century was a period of steady (though not spectacular) growth of Cape living standards, while during the same century workers in other parts of the world saw their purchasing power diminish. The nineteenth century, on the other hand, was a period of a general rise of prosperity in Europe, in the light of which the Cape’s welfare growth seems exceptionally slow (in spite of secure property rights and resource windfalls). These findings contrast with the conventional view of South Africa’s economic history.

Suggested Citation

  • Pim de Zwart, 2011. "Real wages at the Cape of Good Hope: A long-term perspective, 1652-1912," Working Papers 0013, Utrecht University, Centre for Global Economic History.
  • Handle: RePEc:ucg:wpaper:0013
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    References listed on IDEAS

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    1. Robert C. Allen & Jean-Pascal Bassino & Debin Ma & Christine Moll-Murata & Jan Luiten Van Zanden, 2011. "Wages, prices, and living standards in China, 1738–1925: in comparison with Europe, Japan, and India," Economic History Review, Economic History Society, vol. 64, pages 8-38, February.
    2. Feinstein,Charles H., 2005. "An Economic History of South Africa," Cambridge Books, Cambridge University Press, number 9780521616416, October.
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    5. 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.
    6. Özmucur, Süleyman & Pamuk, Şevket, 2002. "Real Wages And Standards Of Living In The Ottoman Empire, 1489–1914," The Journal of Economic History, Cambridge University Press, vol. 62(2), pages 293-321, June.
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    8. Sophia Du Plessis & Stan Du Plessis, 2012. "Happy in the Service of the Company: The Purchasing Power of VOC Salaries at the Cape in the 18th Century," Economic History of Developing Regions, Taylor & Francis Journals, vol. 27(1), pages 125-149.
    9. Feinstein,Charles H., 2005. "An Economic History of South Africa," Cambridge Books, Cambridge University Press, number 9780521850919, October.
    10. Ewout Frankema & Marlous van Waijenburg, 2011. "African Real Wages in Asian Perspective, 1880-1940," Working Papers 0002, Utrecht University, Centre for Global Economic History.
    11. Boshoff, Willem H. & Fourie, Johan, 2010. "The significance of the Cape trade route to economic activity in the Cape Colony: a medium-term business cycle analysis," European Review of Economic History, Cambridge University Press, vol. 14(3), pages 469-503, December.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Lessons from the Cape Colony
      by Johan Fourie in Johan Fourie's Blog on 2012-03-15 15:30:02
    2. Lessons from the Cape Colony
      by Johan Fourie in Johan Fourie's Blog on 2012-03-15 15:30:02

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    1. Sophia Du Plessis & Stan Du Plessis, 2012. "Happy in the Service of the Company: The Purchasing Power of VOC Salaries at the Cape in the 18th Century," Economic History of Developing Regions, Taylor & Francis Journals, vol. 27(1), pages 125-149.
    2. Prados de la Escosura, Leandro, 2013. "Human development in Africa: A long-run perspective," Explorations in Economic History, Elsevier, vol. 50(2), pages 179-204.
    3. Johan Fourie & Jan Luiten Zanden, 2013. "GDP in the Dutch Cape Colony: The National Accounts of a Slave-Based Society," South African Journal of Economics, Economic Society of South Africa, vol. 81(4), pages 467-490, December.
    4. Jeanne Cilliers & Johan Fourie, 2012. "New Estimates Of Settler Life Span And Other Demographic Trends In South Africa, 1652-1948," Economic History of Developing Regions, Taylor & Francis Journals, vol. 27(2), pages 61-86, December.
    5. Johan Fourie, 2011. "Slaves as capital investment in the Dutch Cape Colony, 1652-1795," Working Papers 21/2011, Stellenbosch University, Department of Economics.

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    Keywords

    Colonial history; growth; labour; living standards; South Africa;
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