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Prices, wages and living standards in Spain in the modern era

Published online by Cambridge University Press:  14 October 2024

Luis Felipe Zegarra*
Affiliation:
Pontificia Universidad Católica del Perú, Lima, Peru CENTRUM Católica Graduate Business School, Lima, Peru
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Abstract

This study relies on a linear programming model to estimate welfare ratios in Spain between 1600 and 1800. This method is used to find the food basket that guaranteed the intake of basic nutrients at the lowest cost. The estimates show that working families in Toledo had higher welfare ratios than in those in Barcelona. In addition, the welfare ratios of Spain were always below those of London and Amsterdam. The divergence between Northern Europe and Spain started before the Industrial Revolution and increased over time.

Resumen

Resumen

Este estudio se basa en un modelo de programación lineal para estimar ratios de bienestar en España en 1600-1800. Usando un modelo de programación lineal, se halla la canasta de consumo que garantizó la ingesta de nutrientes básicos al mínimo costo posible. Las estimaciones muestran que las familias de bajos ingresos en Toledo tenían mayores ratios de bienestar que en Barcelona. Asimismo, los ratios de bienestar en España estuvieron siempre por debajo de los ratios de Londres y Ámsterdam. La divergencia entre Europa del Norte y España se inició antes de la Revolución Industrial y aumentó a lo largo del tiempo.

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Type
Articles/Artículos
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 (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution and reproduction, provided the original article is properly cited.
Copyright
Copyright © The Author(s), 2024. Published by Cambridge University Press on behalf of Instituto Figuerola de Historia y Ciencias Sociales, Universidad Carlos III de Madrid
Figure 0

Table 1. Welfare ratios in Europe

Figure 1

Table 2. Comparison between the CP and BN baskets and other studies’ baskets

Figure 2

Figure 1. Cost of living in Spain, 1600–1800 (grams of silver/day).Notes: The figure depicts the evolution of the daily living cost of a family in Toledo and Barcelona in the period 1600-1800 in grams of silver, including food and non-food expenses. CP cost is the living cost if the food cost was equal to the cost of the CP basket. BN cost is the living cost if the food cost was equal to the cost of the BN basket.

Figure 3

Figure 2. Family income in Spain, 1600–1800 (grams of silver/day).Notes: The figure depicts the evolution of family income in Toledo and Barcelona in the period 1600-1800 in grams of silver per day. I assume male labourers were the only source of family income and that they worked 250 days per year. The daily family income was calculated as the wage of a day of work multiplied by 250/365.

Figure 4

Figure 3. Welfare ratios in Spain, 1600–1800.Notes: The figure depicts the evolution of welfare ratios in Toledo and Barcelona in the period 1600-1800. CP ratios are the welfare ratios under the assumption that the cost of food was equal to the cost of the CP basket. BN ratios are the welfare ratios under the assumption that the cost of food was equal to the cost of the BN basket.

Figure 5

Table 3. Welfare ratios: a comparison

Figure 6

Table 4. Welfare ratios in different life stages

Figure 7

Figure 4. BN welfare ratios.Notes: The figure depicts the evolution of BN welfare ratios in Europe. For Toledo and Barcelona, the figure depicts my estimates of the BN welfare ratios. For London, Amsterdam, Paris, Strasbourg, Munich and Leipzig, I adjusted the BN welfare ratios from Zegarra (2022) to make them comparable with my estimates. I multiplied the cost of food in those cities by a factor of 0.942, equal to the ratio between the calories of a family in my study and the calories of a family in Zegarra (2022). For all studies, it is assumed that only one male adult of the family worked, and he did so for 250 days/year. For all countries, the BN food basket was obtained using linear programming.

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