Five centuries of economic inequality in Barcelona analysed

A study conducted by the Centre for Demographic Studies at the Universitat Autònoma de Barcelona (CED-UAB), published recently in the journal Perspectives Demogràfiques, has calculated the evolution of economic inequalities in Barcelona and its area of influence during five decades (1481-1905), a very broad and fairly uncommon period of analysis in these types of studies. In addition to calculating the long-term concentration of richness and the composition and substitution of the economic elite, the study concludes that inequalities were higher in the pre-industrial eras. 

In the old regime, wealth was explained in terms of aristrocrat dominance, while in industrial eras wealth was measured by the weight of day labourers. In fact, the composition of economic elites also changed with time, from aristocracy to the bourgeoisie, and these economic and social transitional moments were also when inequalities were at their largest.

According to researchers, there is an increasing concern about economic inequality among today's societies, and even more with Covid-19, given that it has accelerated the widening of the gap observed recently. This study of inequalities can help to understand the disparities seen today.

A Unique Database 

Few places in the world contain statistical series with which to reconstruct the economic inequality patterns existing during five centuries using a unique documental source such as the one used for Barcelona and its area of influence, thanks to the Barcelona Historical Marriage Database. This unique database was created as part of the project entitled Advanced Grant Five Centuries of Marriages directed by lecturer Anna Cabré. The database contains fiscal information on over 600,000 marriages celebrated during the 15th and 20th centuries, in approximately 250 parishes in Baix Llobregat, Barcelonès, Maresme and Vallès Occidental, and which include the cities of Barcelona, Mataró, Sabadell and Terrassa. Each marriage paid a marriage tax which varied according to the socioeconomic situation of the bride and groom. Once the contributive capacity of each couple was fixed, researchers calculated two inequality indicators: the Gini coefficient and the Theil index.

Three Periods of Inequality

Economic inequality in the area of Barcelona between 1481 and 1881 shows three clear periods which broadly coincide with the economic development phases of Catalonia. The first period corresponds to the years 1481 to 1649 and was characterised by low levels of inequalities and a posterior stability in these levels. 

The second period, which went from 1650 to 1749, witnesses a considerable rise in inequality due to the political and economic reorganisation of the crisis appearing in the previous period. The maximum level of inequality was observed around the year 1740. In the third period, between 1750 and 1880, inequality decreases up until the year 1833, which marks the beginning of the industrialisation period in Catalonia.

The inequality levels of the pre-industrial period, higher than expected, contravene the classical vision of inequalities resulting from industrialisation, as has also been demonstrated in Italy, the Netherlands and Portugal.

Aristocracy, Notorious Contributor to Inequality

Throughout the five centuries covered by the study, the social groups generating economic inequality were not always the same, but rather depended on both population distribution and capacity to accumulate wealth. Before the mid 1800s and especially before the 19th century, the disparity was explained mainly by the notorious contribution of the aristocracy, with a small population size, but relevant importance in terms of total wealth.

Nevertheless, the industrialisation brought with it a fall into poverty of the lowly qualified, which generated inequality, as part of the proletarisation process (proletarians were a very large group, but with almost no accumulation of wealth). The bourgeoisie and more specifically those of the liberal professions became a consolidated group in the 19th century and the one to accumulate the largest amount of wealth, a tendency which had already began in the pre-industrial era. In fact, these different contributions were the prelude to a replacement process of the economic elite.

The Rich Were Richer Than Ever During the Pre-industrialisation Period

Thus, the richest 1% of the population owned 10% of the total wealth in the 15th to 20th centuries, and almost doubled this figure to 17% in the second half of the 17th century. After that moment, the concentration of wealth among the traditionally wealthy (aristocrats) began to diminish.

The aristocrats went from representing over 50% of the top 1% in the 15th to the start of the 17th century, to 10% at the end of the 18th century and all of the 19th century. In contrast, the great merchants saw their weight grow as the accumulation of wealth decreased amongst the traditionally rich.

In fact, the rich were much richer during the pre-industrial period, and although the development of capitalism did provide for greater concentration levels, it cannot be forgotten that this was something already beginning in the old regime. In contrast, the poorest 10% accounted for 7-8% of all wealth at the end of the 15th century and beginning of the 16th century, while only reaching 4% in the 1th century.

"It is right in these moments of economic and social transformation that the disparities could have had a greater impact, something to bear in mind not only in the past, but also in the present, especially in a context in which inequality is growing exponentially", assure the study's researchers Joana Maria Pujadas-Mora, from the CED-UAB, and Gabriel Brea-Martínez, from the Department of Economic History at Lund University, Sweden.

ARTICLE:

Perspectives Demogràfiques. Juliol 2020. "Cinc segles de desigualtat i transformació socieconòmica en l'àrea de Barcelona, 1451-1880". Joana Maria Pujadas-Mora, Gabriel Brea-Martínez, Center for Demographic Studies, Universitat Autònoma de Barcelona, and Department of Economic History at Lund University, Sweden).