Inherited vs Self-Made Wealth: Theory and Evidence from a Rentier Society (Paris 1872-1937)

This paper divides the population into two groups: the "inheritors" or "rentiers" (whose wealth is smaller than the capitalized value of their inherited wealth, i.e. who consumed more than their labor income during their lifetime); and the "savers" or "self-made men" (whose wealth is larger than the capitalized value of their inherited wealth, i.e. who consumed less than their labor income). Applying this simple theoretical model to a unique micro data set on inheritance and matrimonial property regimes, we find that Paris in 1872-1937 looks like a prototype "rentier society". Rentiers made about 10% of the population of Parisians but owned 70% of aggregate wealth. Rentier societies thrive when the rate of return on private wealth ris permanently and substantially larger than the growth rate g (say, r=4%-5% vs g=1%-2%). This was the case in the 19th century and early 20th century and is likely to happen again in the 21st century. In such cases top successors, by consuming part of the return to their inherited wealth, can sustain living standards far beyond what labor income alone would permit.rentier society ;

Histoire économique

Gilles Postel-Vinay, directeur d’études Critique de l’économie historique : les apprentissages Cf. le compte rendu de M. Aymard. La discipline par le temps. Formes du travail et de l’entreprise dans la société préindustrielle et industrielle Cf. le compte rendu de J.-Y. Grenier

Histoire économique

Gilles Postel-Vinay, directeur d’études Compte rendu non communiqué

Histoire économique

Gilles Postel-Vinay, directeur d’études 1. Critique de l’économique historique. L’entreprise (avec Maurice Aymard et Jean-Yves Grenier, directeurs d’études, et Alessandro Stanziani, chargé de recherche au CNRS) Cf. le compte rendu de M. Grenier. 2. Marchés du travail et formes de la concurrence dans la société préindustrielle et industrielle (avec Mathieu Arnoux, Alain Dewerpe et Jean-Yves Grenier, directeurs d’études, et Jérôme Bourdieu, chargé de recherche à l’INRA) Cf. le compte rendu de M..

Histoire économique

Gilles Postel-Vinay, directeur d’études 1. Critique de l’économie historique : l’esclavage (2) (avec Maurice Aymard et Jean-Yves Grenier, directeurs d’études et Alessandro Stanziani, chargé de recherche au CNRS) Cf. le compte rendu de M. Aymard. 2. La discipline au travail. Approches historiques (avec Mathieu Arnoux, Alain Dewerpe et Jean-Yves Grenier, directeurs d’études et Jérôme Bourdieu, chargé de recherche à l’INRA) Le séminaire a poursuivi l’étude sur la longue durée, du Moyen Âge à nos..

Histoire économique

Gilles Postel-Vinay, directeur d’études Critique de l’économie historique : les apprentissages Cf. le compte rendu de M. Aymard. La discipline par le temps. Formes du travail et de l’entreprise dans la société préindustrielle et industrielle Cf. le compte rendu de J.-Y. Grenier

Histoire économique

Gilles Postel-Vinay, directeur d’études 1. Critique de l’économie historique : l’esclavage (avec Maurice Aymard et Jean-Yves Grenier, directeurs d’études et Alessandro Stanziani, chargé de recherche au CNRS) Cf. le compte rendu de M. Aymard. 2. La discipline au travail. Approches historiques (avec Mathieu Arnoux Alain Dewerpe et Jean-Yves Grenier, directeurs d’études et Jérôme Bourdieu, chargé de recherche à l’INRA) Le point de départ du séminaire a été de considérer une situation historique ..

Long Run Health Impacts of Income Shocks: Wine and Phylloxera in 19th Century France

This paper provides estimates of the long-term effects on height and health of a large income shock experienced in early childhood. Phylloxera, an insect that attacks the roots of grape vines, destroyed 40% of French vineyards between 1863 and 1890, causing major income losses among wine growing families. Because the insects spread slowly from the southern coast of France to the rest of the country, Phylloxera affected different regions in different years. We exploit the regional variation in the timing of this shock to identify its effects. We examine the effects on the adult height, health, and life expectancy of children born in the years and regions affected by the Phylloxera. The shock decreased long run height, but it did not affect other dimensions of health, including life expectancy. We find that, at age 20, those born in affected regions were about 1.8 millimeters shorter than others. This estimate implies that children of wine-growing families born when the vines were affected in their regions were 0.6 to 0.9 centimeters shorter than others by age 20. This is a significant effect since average heights grew by only 2 centimeters in the entire 19th century. However, we find no other effect on health, including infant mortality, life expectancy, and morbidity by age 20.

Where have (almost) all the wealthy gone? Spatial decomposition of wealth trends in France, 1820-1939

This paper examines the evolution of wealth distribution in France during the urbanization process of the nineteenth century, based on a comprehensive dataset of individual inheritances. It presents a spatial decomposition between rural and urban areas, distinguishing Paris from other cities. We use a non-parametric approach based on wealth density functions. Changes in the level of wealth explained most of the spatial evolution of wealth during 1820-1939; at the turn of the century however, the effect of urbanization on wealth distribution increased gradually.wealth distribution, decomposition, semi-parametric and nonparametric methods