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In-kind Wages: Understanding Workers’ Strategies to Cope with Inflation and Poverty

Published online by Cambridge University Press:  30 December 2024

Carmen Sarasúa*
Affiliation:
Universitat Autonoma de Barcelona, Economics and Economic History, Barcelona, Spain
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Abstract

Although non-monetary benefits remain an important component of most workers’ wages in today's industrial economies, development economists and economic historians tend to view such payments as a remnant of older, obsolete labour regimes. But when in-kind wages are assumed to be exploitative, an outcome of market inefficiencies, or simply the result of limited supply of coinage, their actual economic functions can be obscured. Once we drop the constraints imposed by such assumptions and look at the historical evidence, we are forced to confront the possibility that workers actually used them to their advantage.

In this article, I analyse how in-kind wages functioned in certain historical contexts, and conclude that available explanations are far too limited. As the historical cases studied show, the different forms of in-kind payments must be examined because those forms – not just overall wage levels – helped determine labour supply, social and occupational mobility, and even capital formation.

The goods and services that made up in-kind payments also provide a fuller understanding of gender wage gaps. Non-monetary wages gave workers options that cash wages did not, and so created and reproduced fundamental inequalities among different groups.

Information

Type
Research Article
Creative Commons
Creative Common License - CCCreative Common License - BY
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
Copyright
© The Author(s), 2024. Published by Cambridge University Press on behalf of Internationaal Instituut voor Sociale Geschiedenis
Figure 0

Figure 1. “El Hambre de 1811” by Carlos Múgica y Pérez.Source: Digital Library Memory of Madrid, Spain – CC BY-NC.https://www.europeana.eu/item/2022711/11931

Figure 1

Table 1. Madrid individuals seeking jobs as domestic servants and willing to work only for lodging and food.

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Table 2. Index of prices, wages, and real wages, Madrid and Castile 1806–1815 (base: 1790–1799).

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Figure 2. Shepherds near the city of Toledo, around 1900.Source: Fund Photographer Pedro Román. Digital Library of the Diputación de Toledo.https://bibliotecadigital.diputoledo.es/pandora/results.vm?q=parent%3A0000049699&s=345&t=-alpha&lang=es&view=fotografias

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Table 3. Wages of farm workers and shepherds in mid-eighteenth-century Pedro Muñoz.

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Table 4. In-kind payments to men workers in eighteenth-century La Mancha.

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Table 5. In-kind payments: Uses, types, and workers receiving them in eighteenth-century Spain.

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Table 6. Wage composition of workers in Campo de Criptana.

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Table 7. In-kind payments to women workers in eighteenth-century La Mancha.

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Table 8. Payments in kind to skilled men workers.