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Towards an explanation of inequality in premodern societies: the role of colonies, urbanization, and high population density

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  • Branko Milanovic

Abstract

Using a newly expanded set of 41 social tables from premodern societies, this article tries to identify the factors associated with the level of inequality and the inequality extraction ratio (how close to the maximum inequality the elites have pushed actual inequality). Strong evidence is found to show that elites in colonies were more extractive, and that more densely populated and less urbanized countries exhibited lower extraction ratios. Several possibilities are proposed, linking high population density to low inequality and to low elite extraction.

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  • Branko Milanovic, 2018. "Towards an explanation of inequality in premodern societies: the role of colonies, urbanization, and high population density," Economic History Review, Economic History Society, vol. 71(4), pages 1029-1047, November.
    • Handle: RePEc:bla:ehsrev:v:71:y:2018:i:4:p:1029-1047
    DOI: 10.1111/ehr.12613
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    3. Marcin Wroński, 2023. "Income distribution in Warsaw in the 1830s," European Review of Economic History, European Historical Economics Society, vol. 27(4), pages 581-605.
    4. Laura Panza & Jeffrey G. Williamson, 2019. "Always Egalitarian? Australian Earnings Inequality c1870," CEH Discussion Papers 01, Centre for Economic History, Research School of Economics, Australian National University.
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    6. Schaff, Felix S.F., 2023. "Warfare and Economic Inequality: Evidence from Preindustrial Germany (c. 1400-1800)," Explorations in Economic History, Elsevier, vol. 89(C).
    7. Michiel de Haas, 2022. "Reconstructing income inequality in a colonial cash crop economy: five social tables for Uganda, 1925–1965 [Long-term trends in income inequality: winners and losers of economic change in Ghana, 18," European Review of Economic History, European Historical Economics Society, vol. 26(2), pages 255-283.
    8. Alvaredo, Facundo & Cogneau, Denis & Piketty, Thomas, 2021. "Income inequality under colonial rule. Evidence from French Algeria, Cameroon, Tunisia, and Vietnam and comparisons with British colonies 1920–1960," Journal of Development Economics, Elsevier, vol. 152(C).
    9. Alfani, Guido & Di Tullio, M & Fochesato, M, 2020. "The determinants of wealth inequality in the Republic of Venice (1400-1800)," CAGE Online Working Paper Series 483, Competitive Advantage in the Global Economy (CAGE).
    10. Ellen Hillbom & Jutta Bolt & Michiel de Haas & Federico Tadei, 2024. "Income inequality and export‐oriented commercialization in colonial Africa: Evidence from six countries," Economic History Review, Economic History Society, vol. 77(3), pages 975-1004, August.
    11. Laura Panza & Jeffrey G. Williamson, 2021. "Always egalitarian? Australian earnings inequality 1870–1910," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 61(2), pages 228-246, July.
    12. Schaff, Felix, 2020. "When ‘the state made war’, what happened to economic inequality? Evidence from preindustrial Germany (c.1400-1800)," Economic History Working Papers 107046, London School of Economics and Political Science, Department of Economic History.
    13. Milanovic, Branko, 2024. "How rich were the rich? An empirically-based taxonomy of pre-industrial bases of wealth," Explorations in Economic History, Elsevier, vol. 93(C).
    14. Kumon, Yuzuru, 2021. "The Deep Roots of Inequality," IAST Working Papers 21-125, Institute for Advanced Study in Toulouse (IAST).
    15. Felix S.F. Schaff, 2023. "The Unequal Spirit of the Protestant Reformation: Particularism and Wealth Distribution in Early Modern Germany," Working Papers 0239, European Historical Economics Society (EHES).
    16. Alvaredo, Facundo & Cogneau, Denis & Piketty, Thomas, 2020. "Income inequality under Colonial Rule: Evidence from French Algeria, Cameroon, Tunisia, and Vietnam and comparisons with the Br," CEPR Discussion Papers 14969, C.E.P.R. Discussion Papers.
    17. Schaff, Felix, 2020. "When ‘the state made war’, what happened to economic inequality? Evidence from preindustrial Germany (c.1400-1800)," LSE Research Online Documents on Economics 107046, London School of Economics and Political Science, LSE Library.
    18. Andres Irarrazaval, 2022. "The Fiscal Origins of Comparative Inequality levels: An Empirical and Historical Investigation," Working Papers wp531, University of Chile, Department of Economics.
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    20. Abdulaleem Isiaka & Alexander Mihailov & Giovanni Razzi, 2022. "Reallocating Government Spending to Reduce Income Inequality: Panel Data Evidence from the Middle-Income Countries," Economics Discussion Papers em-dp2022-08, Department of Economics, University of Reading.

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