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Functional income distribution in Uruguay (1870 – 1908). A methodological note

Author

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  • Pablo Marmissolle

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Henry Willebald

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

Abstract

We describe the methodology and sources used to estimate the functional income distribution series in Uruguay for the period prior to the 1908 census. We show the estimates and splices made to obtain continuous series with an annual frequency for the period 1870–1908. Income is decomposed, in functional terms, into wages, land rents, mixed capital-labour incomes, and profits. Given the extended time frame and diversity of available sources, we first describe the methodology used to estimate each income component in 1880-1908, followed by the estimation method for 1870-1880. The results indicate that the main changes in the distribution are observed between profits and wages. Until the outbreak of the crisis in 1890, there was a clear upward trend in the profit share, the counterpart of which was a decline in the wage share. After the crisis, the trends reversed. From 1894 onwards, both shares showed a stable trend until the end of the period, although significant variations in their levels can be observed. Land revenue represented 20% of income until 1883; its share of income fell in 1884-1887, after which it stabilised at approximately 16%. Mixed incomes maintained a relatively stable income share of around 7%.

Suggested Citation

  • Pablo Marmissolle & Henry Willebald, 2023. "Functional income distribution in Uruguay (1870 – 1908). A methodological note," Documentos de Trabajo (working papers) 23-24, Instituto de Economía - IECON.
    • Handle: RePEc:ulr:wpaper:dt-24-23
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    File URL: https://hdl.handle.net/20.500.12008/42237
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    References listed on IDEAS

    as
    1. Bengtsson, Erik & Waldenström, Daniel, 2018. "Capital Shares and Income Inequality: Evidence from the Long Run," The Journal of Economic History, Cambridge University Press, vol. 78(3), pages 712-743, September.
    2. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    3. Pablo Castro Scavone & Henry Willebald, 2022. "Producto regional en Uruguay durante la Primera Globalización (1872-1908): desigualad decreciente y convergencia entre regiones," Investigaciones de Historia Económica - Economic History Research (IHE-EHR), Journal of the Spanish Economic History Association, Asociación Española de Historia Económica, vol. 18(01), pages 50-64.
    4. Julio Martinez-Galarraga & Adrián Rodríguez Miranda & Henry Willebald, 2020. "Patterns of Regional Income Distribution in Uruguay (1872–2012): A Story of Agglomeration, Natural Resources and Public Policies," Palgrave Studies in Economic History, in: Daniel A. Tirado-Fabregat & Marc Badia-Miró & Henry Willebald (ed.), Time and Space, chapter 0, pages 271-307, Palgrave Macmillan.
    5. Carolina Román & Henry Willebald, 2021. "Structural change in a small natural resource intensive economy: Switching between diversification and re-primarization, Uruguay, 1870–2017," Economic History of Developing Regions, Taylor & Francis Journals, vol. 36(1), pages 57-81, January.
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    More about this item

    Keywords

    functional income distribution; national accounts; Uruguay;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean
    • N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean

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