Economic inequality in Madrid, 1500-1840

Abstract

The study of economic inequality in preindustrial economies has received recent attention by economic historians, who have tried to unlock the mysteries of the left side of the Kuznets curve. This paper will try to shed some light on the debate providing new estimations of economic inequality in the province of Madrid using a sample of rural locations around the capital. Estimates of inequality are based on fiscal records that are demonstrated in this paper to be adequate source for measuring differentials in wealth and income across individuals. We will offer not just an overview of the changes in economic inequality in the long run, but will also provide enough periodicity in our calculations to observe short and middle term changes to capture better the connection between changes in inequality and the economic cycle. The initial results seem to indicate that economic inequality in the province of Madrid rose between 1500 and 1840, although the pattern was not a linear one and was closely connected with the economic cycle, with inequality rising together with economic growth and viceversa.