Thursday, October 2, 2014

The history of inequality: Breaking the camel’s back


ANGUS MADDISON, who died in 2010, was among the most influential of economic historians; his book on the world economy over the past 2,000 years is a classic. Now, one of the institutions he worked for, the Organisation for Economic Co-operation and Development, has teamed up with the University of Utrecht to produce an account of the conditions of life in 25 countries since 1820. It details everything from builders’ wages in 1920s Japan to homicide rates in 19th-century Italy. It bridges the gap between Maddison’s macroeconomic panorama and microeconomic studies by historians such as Peter Laslett, author of “The World We Have Lost”, about early modern England.For the most part, the findings confirm what is suspected, if not known in such detail. The number of years in education has increased everywhere. Average heights have risen almost everywhere (by 1.1cm more in America in 1820-1990 than in China). The purchasing power of construction workers’ wages has grown everywhere, though in Britain the rise was tenfold in 1820-2000; in Indonesia it was only twice.There is an exception to this generalisation, though: inequality. You would expect that...



from The Economist: Finance and economics http://ift.tt/1uE3hGk

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