Rural Living Standards and Inequality: a Case Study from Southern Sweden 1780-1919

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Rural Living Standards and Inequality: a Case Study from Southern Sweden 1780-1919 Rural Living Standards and Inequality: A Case Study from Southern Sweden 1780-1919 Willner, Sam 2021 Document Version: Other version Link to publication Citation for published version (APA): Willner, S. (2021). Rural Living Standards and Inequality: A Case Study from Southern Sweden 1780-1919. (Lund Papers in Economic History; No. 2021:219). 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LUND UNIVERSITY PO Box 117 221 00 Lund +46 46-222 00 00 Download date: 27. Sep. 2021 Lund Papers in Economic History No. 219, 2021 Rural Living Standards and Inequality: A Case Study from Southern Sweden 1780-1919 Sam Willner DEPARTMENT OF ECONOMIC HISTORY, LUND UNIVERSITY Rural Living Standards and Inequality: A Case Study from Southern Sweden, 1780-1919* Sam Willner♦ Abstract For several decades a lively debate has been ongoing regarding how living standards and economic inequality actually developed during the agrarian and industrial revolutions in 19th century Western Europe. This study examines rural living standards and inequality among common people in five Swedish parishes, based on circa 4,000 probate inventories in the period from 1780s to 1910s. It is probably the most comprehensive study done so far regarding wealth development of a local Swedish rural context, covering the entire 19th century, comparing and analysing the material standard of living for different socio economic groups related to the fundamental social processes taking part during the 19th century, such as the agrarian and industrial revolutions. The local design in combination with a relatively large dataset allows for more detailed analyses and controlling for more variables than is usually possible in studies on a higher geographical level. The local approach, taking into account specific contextual factors, could help to reveal relevant mechanisms affecting the development and distribution of wealth that might be hidden in studies based on aggregate data on national level not considering regional variations. Among farmers net wealth increased stepwise during the 19th century to a large extent due to rising real estate values, while lower social classes, largely in accordance with several previous studies, witnessed stagnating wealth levels until the breakpoint around the1860s, whereafter material resources started to rise substantially according to the wealth estimates. Besides real estate increasing bank savings was a major factor for the improving wealth in early 20th century, but also an increasing number of movable assets, such as *Acknowledgements: A great thank to Erik Bengtsson, Department of Economic History at Lund University, for many valuable comments and suggestions. ♦ Sam Willner, Department of Culture and Society (IKOS), History unit, Linköping University. 1 household utensils, furniture and bed clothing, contributed to an improvement in standard of living regarding comfort and hygiene in late 19th century. Improvements in agricultural production is likely to somewhat have counteracted the negative impact from the population growth and the rising proportion of the landless population. But still until the last severe crop failure, and the onset of the great emigration wave to the US, in late 1860s bad harvests appear to have had a temporarily negative effect on health and economic wellbeing among the labouring poor. The great US emigration reducing the supply of labour contributed to pushing wages upwards and to the rising standard of living of workers in late 19th century. According to the Gini-estimates inequality culminated around mid 19th century between farmers and workers as well as within the different social groups, and then declined substantially in late 19th century, contrary to the findings from studies of national level. Simultaneously the social structure changed significantly. The numbers of traditional rural groups, particularily lower agrarian workers, declined whilst the number of industrial workers, such as paper milll workers and glass work labourers, rose sharply. It is likely that the rapid overflow of low paid rural workers to better paid industrial jobs contributed to close the economic gap between different social groups. It I obvious that the changes in the social structure within in the landless population groups, particularly the share of low rural workers, was highly decisive for the fluctuations in inequality. The results from this study highlights the importance of regional and local studies for revealing important mechanisms affecting the development of standard of living and economic inequality in a historical perspective Keywords: rural standard of living, wealth inequality, 19th century, Sweden, agrarian revolution, industrialization, probate inventories JEL Codes: N33 2 1. Introduction Over half a century a lively debate regarding how the agrarian and industrial revolutions affected the living standards among common people in Britain has been going on between “optimists” and “pessimists”.1 The optimists claiming an improving living standard during thev early industrialisation period. This view has been questionned by the pessimist contending that material conditions for the working class did not start to improve significantly until the second half of the 19th century. The specific social consequences of the agricultural revolution and the enclosure reforms in England have also been disputed. The “pessimists” claiming that the labouring poor lost access to the commons and was also affected by falling employment opportunities, while the “optimists” or revisionists claim that the loss of the access to the commons was counteracted by an increase in more regular working opportunities.2 Studies analysing standard of living in a historical perspective have been based on various factors, such as mortality, food intake and body stature, GDP per capita, real wages, consumption data and estimates from probate inventories. Studies based on analyses of probate inventories appears often to indicate a higher standard of living than those based on real wage development and biological standard of living for example.3 According to Kuznets did the transition from an agrarian to a industrial economy initially lead to increasing income inequality as an effect of the overflow of people from agriculture to better-paid industrial works, until the majority of the workers had moved into the higher paying industrial sector.4 Regarding the social distribution of material resources, many studies, applying the Kuznets curve on historical wealth inequality, confirm the view, proposed by van Zanden 1995,5 that economic growth and rising wealth was positively correlated to increasing inequality during the industrial breakthrough as well as in the pre industrial period.6 There are however some studies suggesting that this not always has been 1 See the contributions in Taylor,A.J. (ed), The Standard of Living in Britain in the Industrial Revolution, 1975. See also the discussion in Griffin, E., “Diets, hunger and living standards during the British industrial revolution”, Past and Present, 239, 2018. 2 Dribe, M, Olsson, M. and Svensson, P., “The agricultural revolution and the conditions of the rural poor, southern Sweden, 1750-1860”, Economic History Review, 70, 2, 2017, 483-508. 3 Hallén, P., Överflöd eller livets nödtorft. Materiell levnadsstandard i Sverige 1750-1900 i jämförelse med Frankrike, Kanada och Storbritannien, 2009, p 60. 4 Kuznets, S., “Economic growth and income inequality”, American Economic Review, 45, pp1-28, 1955. 5 Van Zanden, J.L., “Tracing the beginning of the Kuznets curve: western Europe during the early modern period”, Economic History Review, XLVIII:4, pp 643-664, 1995. 6 See Bengtsson E., Missiaia, A, Olsson, M. and Svensson, P. “Wealth inequality in Sweden, 1750-1900”, Economic History Review, 71, 3, pp 772-794, 2018. 3 the case, and that variations in sectoral structure, migration, urbanisation degree, class structure etc, mean that the general relation between wealth growth and rising inequality did not hold on the regional level.7 It is important to keep in mind that the industrial breakthrough occured much later in Sweden than in Britain, and that Swedish economy was essentially based on agriculture during the first half of the 19th century. Most scholars do agree on the view that the production of vegetables increased more rapidly than the population growth,8 and that the standard of living in Sweden in general terms increased substantially during most of the nineteenth century, but it is less clear how material resources was socially distributed and the more precise timing of improvement
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