Wages, Prices, and Living Standards in South Africa, 1835-1910: A Global Perspective

Abstract

This paper examines the origins of global economic inequality by focusing on the case of colonial South Africa. Using new data on wages and prices from the British National Archives, the long-term development of the standard of living for a variety of groups (both Africans and settlers) is sketched and compared to living standards in other parts of the world. This research thereby contributes to South Africa’s economic history by providing new insights on inequality and human capital formation during the nineteenth century. Furthermore, it sheds light on the Great Divergence debate, as well as the debate on the long-term blessings and curses of colonial rule for Europe’s former colonies.