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11 - Inequalities between Individuals, Households and Nations

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Karl Gunnar Persson
Affiliation:
University of Copenhagen
Paul Sharp
Affiliation:
University of Southern Denmark
Markus Lampe
Affiliation:
Wirtschaftsuniversitat Wien, Austria
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Summary

This chapter examines the long-term development of inequality in Europe, focusing on disparities between individuals, households and nations. It explores how social and economic inequalities have evolved over time, influenced by economic forces as well as factors such as gender, race and class. The chapter also considers global inequality, discussing the gap between rich and poor nations and the factors that have contributed to economic divergence or convergence. By analysing the historical roots of inequality and the role of institutions in mitigating or exacerbating it, the chapter provides insights into the social and economic consequences of unequal income distribution and how it shapes economic policy debates today.

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Chapter
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An Economic History of Europe
Knowledge, Institutions and Welfare, Prehistory to the Present
, pp. 254 - 274
Publisher: Cambridge University Press
Print publication year: 2025

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References

Bibliography:

Dossi, Piroschka and von Weizsäcker, Robert. Ungleichheit: Eine phantastische Erzählung (Springer, 2016).CrossRefGoogle Scholar
Lindert, Peter H. and Williamson, Jeffrey G.Revising England’s social tables 1688–1812’, Explorations in Economic History 19 (1982), 385408.CrossRefGoogle Scholar
Milanović, Branko. The Haves and the Have-Nots (Basic Books, 2012).Google Scholar
Milanović, Branko, Lindert, Peter H. and Williamson, Jeffrey G. ‘Measuring ancient inequality’, NBER Working Paper 13550 (2007).Google Scholar
Milanović, Branko, Lindert, Peter H. and Williamson, Jeffrey G.Pre-industrial inequality’, Economic Journal 121 (2011), 255–72.CrossRefGoogle Scholar

Bibliography

Boberg-Fazlić, N. and Sharp, P.North and south: long-run social mobility in England and attitudes toward welfare’, Cliometrica 12 (2018), 251–76.CrossRefGoogle Scholar
Clark, G. The Son also Rises: Surnames and the History of Social Mobility (Princeton University Press, 2014).Google Scholar
Long, J. and Ferrie, J. P.Intergenerational occupational mobility in Great Britain and the United States Since 1850’, American Economic Review 103(4) (2013), 1109–37.Google Scholar

Suggestions for Further Reading

A splendid introduction to the study of inequality is Milanović, B., Worlds Apart: Measuring International and Global Inequality (Princeton University Press, 2005). It is worth looking at Milanović’s homepage and his blog http://glineq.blogspot.com/. Milanović’s more recent books, The Haves and The Have-Nots (Basic Books, 2012) and Global Inequality: A New Approach for the Age of Globalization (Belknap Press, 2016) continue and deepen the story. His Visions of Inequality (Harvard University Press, 2023) explores the history of economic thought on inequality.

Good overviews of the evolution of top incomes and the rich are Atkinson, A. B., Piketty, T. and Saez, E., ‘Top incomes in the long run history’, Journal of Economic Literature 49(1) (2011), 371, and Alfani, Guido, ‘Economic inequality in preindustrial times: Europe and beyond’, Journal of Economic Literature 59(1) (2021), 344. Piketty, Thomas has written a nice summary of his work, A Brief History of Inequality (Belknap Press, 2022). Alfani’s recent book, As Gods Among Men: A History of the Rich in the West (Princeton University Press, 2023), is the result of decades of work on the rich in pre-industrial times. Goldin, C. and Katz, L. F., The Race between Education and Technology (Belknap, 2010) helps to understand the forces shaping wage inequality.

There are a number of historical gender gap studies for Britain, most recently Humphries, J. and Weisdorf, J., ‘The wages of women in England, 1260–1850’, Journal of Economic History 75(2) (2015), 405–47. Keniston McIntosh, M. takes a similarly long view in Working Women in English Society 1300–1620 (Cambridge University Press, 2005). For studies on key time periods see Whittle, J. and Hailwood, M., ‘The gender division of labour in early modern England’, Economic History Review 73(1) (2020), 332; Horrell, S. and Oxley, D., ‘Bargaining for basics? inferring decision making in nineteenth-century British households from expenditure, diet, stature, and death’, European Review of Economic History 17(2) (2013), 147–70, and Measuring misery: body mass, ageing and gender inequality in Victorian London’, Explorations in Economic History 46(1) (2009), 91119; Boot, H. M. and Macdonald, J. H., ‘New estimates of age- and sex-specific earnings and the male–female earnings gap in the British cotton industry, 1833–1906’, Economic History Review 61(2) (2008), 380408, and Burnette, J., Gender, Work and Wages in the Industrial Revolution (Cambridge University Press, 2008), a provocative and well-researched study. The author overstates when she argues that practically no gender gap can be explained by discrimination, but it is a useful reminder that to a considerable extent wage gaps can be explained by differences in skills, physical strength and formal or informal schooling.

For the US and for the general framing of the literature on gender inequality, Goldin, C.’s Understanding the Gender Gap: An Economic History of American Women (Oxford University Press, 1990) is essential reading. Her Richard T. Ely Lecture The Quiet Revolution That Transformed Women’s Employment, Education, and Family’, American Economic Review 96(6) (2006), 121 and her book Career and Family: Women’s Century-Long Journey toward Equity (Princeton University Press, 2021) update this research.

Other recent studies which were referred to are van Zanden, J. L., Baten, J., Foldvari, P. and van Leeuwen, B., ‘The changing shape of global inequality 1820–2000: exploring a new dataset’, Review of Income and Wealth 60(2) (2014), 279–97; Scheidel, W., The Great Leveler (Princeton University Press, 2017); Beltrán, F. and Szołtysek, M., ‘Inferring “missing girls” from child sex ratios in historical census data’, Historical Methods 55(2) (2022), 98121 (and references therein); Björklund, A., Roine, J. and Waldenström, D., ‘Intergenerational top income mobility in Sweden: capitalistic dynasties in the land of equal opportunity?’, Journal of Public Economics 96(5) (2012), 474–84; Björklund, A. and Jäntti, M., ‘Intergenerational income mobility and the role of family background’, in Salverda, Wiemer, Nolan, Brian and Smeeding, Timothy M (eds), Oxford Handbook of Economic Inequality (Oxford University Press, 2009), 491521.

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