THE SWEDISH WAGE-RENTAL RATIO AND ITS DETERMINANTS, 1877-1926

Jan Bohlin and Svante Larsson

Australian Economic History Review, 2007, vol. 47, issue 1, pages 49-72

Abstract: Trends in wage-rental ratios figure prominently in the recent literature on factor price convergence and globalisation in the late nineteenth century. Sweden has been described as a free-trade country whose wage-rental ratio exhibited a distinctive upward trend before World War I. This article presents a new land price series that indicates an increase in land rentals and an evolution of the wage-rental ratio more in line with other European protectionist countries. We explore the determinants of the Swedish wage-rental ratio and assess the relative importance of protectionism and changes in Swedish farming's product mix from crop to animal products. Copyright 2007 The Authors; Journal compilation Blackwell Publishing Asia Pty Ltd and the Economic History Society of Australia and New Zealand 2007.

Date: 2007

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