Historical Inequality Reconstruction
Historical inequality reconstruction estimates how unequally income was distributed in pre-industrial societies that left no household surveys, by exploiting social tables—contemporary or reconstructed enumerations of social classes with their populations and average incomes, in the tradition of Gregory King's 1688 anatomy of England. Branko Milanovic, Peter Lindert and Jeffrey Williamson developed the modern framework, computing a Gini coefficient from these grouped data and then placing it in context with two further concepts. The inequality possibility frontier defines the maximum inequality a society could sustain once everyone must receive at least subsistence; because poor societies have little surplus above subsistence to redistribute upward, their feasible inequality is constrained. The extraction ratio—actual inequality divided by this maximum—measures how fully the elite extracted the available surplus. Together these tools let historians compare not just raw inequality but the rapacity of ruling classes across societies of vastly different average income.
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- Milanovic, B., Lindert, P. H., & Williamson, J. G. (2011). Pre-Industrial Inequality. The Economic Journal, 121(551), 255-272. · DOI 10.1111/j.1468-0297.2010.02403.x
- Allen, R. C. (2001). The Great Divergence in European Wages and Prices from the Middle Ages to the First World War. Explorations in Economic History, 38(4), 411-447. · DOI 10.1006/exeh.2001.0775
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