Scandinavian Working Papers in Economics

Lund Papers in Economic History,
Lund University, Department of Economic History

No 186: The rise of the middle class: The income gap between salaried employees and workers in Sweden, 1830-1935

Erik Bengtsson () and Svante Prado
Additional contact information
Erik Bengtsson: Department of Economic History, Lund University, Postal: Department of Economic History, Lund University, Box 7083, S-220 07 Lund, Sweden
Svante Prado: Department of Economy and Society, University of Gothenburg

Abstract: We present the first comprehensive, long run salary information on Swedish middle-class employees before the twentieth century. Our data include school teachers, professors, clerks, policemen and janitors in Stockholm 1830–1935. We use the new data to compare the annual earnings of these middle-class employees with the annual earnings of farm workers and manufacturing workers. The results show that the income gap between the middle class and the working class widen drastically from the mid-nineteenth century to a historically high level during the 1880s and 1890s. The differentials then decreased during the first four decades of the twentieth century. The bulging earnings advantage of middle-class employees vis-à-vis unskilled workers chimes with Kocka’s depiction of the latter half of the nineteenth century as the era of the bourgeoisie.

Keywords: wages; salaries; income inequality; middle class; Sweden

JEL-codes: J31; N13; N33

28 pages, January 14, 2019

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