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For two decades, real wage comparisons have been centre stage in global socio-economic history studies of comparative development, offering a tractable – if oversimplified – gauge of living standards. But critics argue that these studies have leaned too heavily on the earnings of male, urban, unskilled, daily wage labourers, overlooking wage disparities between social groups and the mechanics of how wages were paid. This Special Issue attempts to shift the focus to overlooked groups and “wage systems” – the methods behind pay determination – and their role in deepening or mitigating inequality. This introduction attempts a global overview of the long-term developments in real wage studies, highlighting methodological innovations and challenges over recent decades. It also explains how the various articles in this Special Issue, spanning topics from medieval Europe to colonial India, contribute to this field. We argue that wage systems – and the inequalities they breed – played out in ways as varied as history itself, so comparing material living standards across time and space remains a complex calculation. We plead for a two-pronged approach: the continued study of all types of income of all working people, alongside a new focus on the social norms, institutions, and systems that determine the opportunities for individuals to acquire an income. A consolidated bibliography of all references in this Special Issue may help future research.
Although real wages have long been a cornerstone of our understanding of the premodern economy, in recent years historians have become sceptical about their usefulness as a proxy for living standards. One of the main concerns is that, before industrialization, most households did not depend on wages but were self-employed. This article therefore proposes a new methodology to test the representativeness of real wage series for the general population by comparing changes in the purchasing power of builders’ wages with the relative position of building labourers in tax lists. Not surprisingly, it confirms their exceptional position, which evolved according to remuneration. Instead of disregarding the unreal wages, the methodology shows a promising path forward. The relationship between changes in wage income and the relative position in fiscal sources can be exploited to identify other groups who were or became dependent on this type of labour. Accordingly, it holds the potential to retrace shifts in the functional distribution of income and the wage systems for different groups in the premodern economy.
This article makes use of nearly 25,000 observations representing over 95,000 paid workdays across over 300 years to investigate individual work patterns, work availability, and the changes in work seasonality over time. This sample is comprised of workers in the construction industry, and includes unskilled men and women as well as skilled building craftsmen – the industry that is often used to estimate comparative real wages through early modern Europe. Data come predominantly from Scania, the southernmost region in modern day Sweden, and especially from Malmö, the largest town in the region.
Findings indicate that workers probably do not engage in paid labour on a purely labour-supply-based schedule, but are strongly impacted by the demand for construction labour, which was highly seasonal and impacted by local labour institutions. Seasonality was stronger further back in the past, indicating that finding long-term work may have been more difficult in earlier periods. A typical work year could probably not have been longer than 150 days, and would be made up of shorter work spells at several different sites. This is not enough work to meet standard assumptions of 250 days, or enough work for an unskilled man to support his family at a respectable level. Individual workers rarely worked more than a handful of days in a year on a construction site, even when labour demand was high, indicating that they did not maximize their income from waged labour.
This paper investigates the labour market for female servants in England and Wales between 1780 and 1834, using previously unexplored archival materials alongside qualitative sources. After introducing the dataset, the study provides a micro-level analysis of wage determinants and traces the sources and evolution of employer market power. The findings show that real wages fell substantially during the early decades of the nineteenth century and stagnated throughout the period from 1780 to 1834. Amid rising cost-of-living pressures in the early 1800s, declining real wages were accompanied by increased nominal wage bunching, suggesting greater employer market power. These trends are contextualized with insights from servants’ autobiographies and household manuals. The combined quantitative and qualitative evidence suggests that service labour markets were highly localized, employers coordinated wage-setting and working conditions, and servants faced barriers to job mobility due to living in tied housing, difficulties in recovering unpaid wages, and the critical role of character references. The results indicate that employers in the largest segment of the labour market had considerable wage-setting power, which intensified during the early years of industrialization.
This study investigates the wages and labour contracts of Khoe workers in Graaff Reinet, a district on the Cape Colony's eastern frontier in the early nineteenth century. Using wage registers from 1801 to 1810, we offer the first individual-level analysis of wages for both male and female Khoe workers, examining payment forms, socio-economic stratification, and gendered wage dynamics. The findings highlight a persistently high reliance on in-kind payments – aligned with the pastoral economy and cultural preferences of the Khoe – but reveal a gradual shift towards cash wages, driven by the colonial administration's efforts to reduce labour coercion. Gender disparities emerge as a critical theme, with female labourers experiencing higher wage inequality and receiving a larger proportion of in-kind wages. The analysis underscores the intersection of colonial economic policies, labour practices, and social inequalities, challenging aggregate approaches to understanding inequality and living standards in colonial Africa. These insights expand our knowledge of coercive labour systems and frontier economies.
The article explores the evolution of household income in India before the late nineteenth century. At a time when criticism of estimates of global real wages challenges the assumptions arising from the Great Divergence Debate, we aim to provide alternative ways of contributing to the discussion. By looking at individual and household income, as well as consumption levels in different parts of India, we found that members of the household other than the head (namely women) supplied a larger part of its total income than an analysis of wage differentials would suggest. Moreover, we argue that India, in the centuries under review, had a functioning labour market, despite several impediments. This adds to the value of our data as building blocks to reconstruct real wages and, consequently, to better understand welfare levels. Nevertheless, the decline in the Indian skill premium suggests that channels of social mobility decreased over time. The implications of all these findings for the Great Divergence Debate depend on the extent to which our approach also has consequences for our view on household income in other parts of Eurasia. Certainly, they call for a nuanced approach to Indian economic development during the period.
This article examines the business strategies employed by early twentieth-century Bombay mill owners in work organization and wage differentiation. The traditionally highly segmented and fluctuating domestic textile markets in India were further complicated by colonial free trade policies, making them highly competitive. This prompted Bombay mills to adopt various strategies, including maintaining a flexible workforce, product diversification, tailoring sales strategies to the Indian market, and increasing labour inputs, related to their heavy reliance on short-stapled Indian raw cotton. Using detailed and disaggregated data reported by textile mills in Bombay during the 1920s and 1930s, this article investigates how employers adopted these strategies in tandem with distinct wage-setting systems as management tools to depress the wage bill. By analysing the motivations behind the adoption of or resistance to these tools across different operations within the production process – such as weaving, spinning, reeling, and winding – the article reveals how gendered and social-class stratifications shaped these strategies and led to wage disparities across the industry. Ultimately, these labour-intensive strategies, conditioned by the broader colonial context in which India's textile industry developed, were at the root of the lower productivity of Indian workers, with long-run adverse consequences for India's general industrial development.
Differences between models of industrialization are increasingly recognized as an important element of global economic history, and the quality of jobs is receiving new interest as a better indicator of living standards than income alone. This paper considers the implications of historical development models for job quality using the spinning section of textile manufacture in the early United States as a case study. The three factory systems that originated in Rhode Island, Massachusetts, and around Philadelphia varied in technical choice, management practices, and establishment size, and exhibited heterogeneity in components of job quality. The paper uses quantitative evidence, including more than 2000 observations of early industrial workers’ wages, qualitative material from government investigations, worker letters, and company correspondence, and the Historical Job Quality Indicators to analyse work quality for spinning workers and to explore variation between the three industrial models. Workers in the more competitive Philadelphia model had lower real earnings, less job security, and higher work intensity than employees of the paternalistic Massachusetts mills. The paper highlights the importance of considering variation by location when evaluating historical living standards and the implications of industrialization strategies for quality of life.
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.
Studies on household income and consumption in Southern Europe have primarily focused on rural areas and factory workers. In this study, we aim to incorporate evidence of household income, considering the earnings of all household members and not just the male wage, using the population list of Zaragoza (Spain) from 1924. This population list is the first (and the last) to systematically record the wages of all citizens regardless of their family role or age. Our results confirm that, in 1924, most working-class households still required the labour of women and/or children to meet basic consumption needs (on average, they contributed nearly sixty per cent of the household income). Based on different food consumption baskets, the results also show that, with household income, the majority of working-class families could afford a basic consumption basket but not a nutritionally more complete basket.