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Wages, prices and living standards in Spanish America: evidence from Lima

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  • Luis Felipe Zegarra

    (Pontificia Universidad Catolica del Peru
    CENTRUM Católica Graduate Business School)

Abstract

By relying on information on wages from primary sources, I estimate welfare ratios in Lima in 1757–1819. I use two alternative methods to estimate the subsistence basket and welfare ratios. The results indicate that working families in Lima faced severe difficulties to cover their basic needs if they did not deviate from typical consumption habits. However, they could cover their nutritional and other basic needs if they replaced expensive foods, such as meats and bread, with cheaper sources of nutrients, such as maize flour. An international comparison shows that the welfare ratio in Lima was lower than the ratios in Northern Europe and North America. However, Lima compared well to several important European cities, such as Paris, Munich and Toledo.

Suggested Citation

  • Luis Felipe Zegarra, 2024. "Wages, prices and living standards in Spanish America: evidence from Lima," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 18(3), pages 837-867, September.
    • Handle: RePEc:spr:cliomt:v:18:y:2024:i:3:d:10.1007_s11698-023-00278-9
    DOI: 10.1007/s11698-023-00278-9
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    More about this item

    Keywords

    Living costs; Prices; Wages; Peru;
    All these keywords.

    JEL classification:

    • N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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