Category Archives: Personal and interviews

A Short History of the Bank of England: Dan Snow’s History Hit podcast

You can hear my participation in Dan Snow’s History Hit podcast here. Thanks to Dan for the invitation.

For anyone interested in knowing more, this is the paper (joint with Patrick O’Brien) recently published in the EHR and motivated this participation, available in open access here. This was the main paper underlying our discussion, though in the podcast Dan and I also discuss monetary politcy and the role of central banks in more recent times.

p.s. I heard the recording and take the opportunity to mention that around minute 17.43, when I say “sixteenth century”, I obviously meant to say “eighteenth century”. And just before the break when I said “lending”, I meant “borrowing”: though this should be clear from the context. That was my fault of course: perils of live recordings!

Interview to Atlantico

Here’s the transcript, in English, of a recent interview I gave to the French media Atlantico, concerning this paper (joint work with Jaime Reis and Lisbeth Rodrigues).

The interview concerns the causes of the Little and Great Divergences, with particular attention to the “Girl Power” hypothesis. (A recent VoxEU column is also available in this link.)

My French is not great so I responded in English. I copy below the responses that I sent them.

In your study “Historical gender discrimination does not explain comparative Western European development”, you mention the fact that the slow economic growth of south-western Europe since the Middle Ages is often attributed to the lesser influence of women compared to northern countries such as England or the Netherlands. Where do we find such statements? Why is this explanation so common?

Around 1900, Global Inequality between countries was at an all-time high. Most of Europe and its offshoots (such and the USA and Australia) had been growing systematically for a long time, while much of the rest of the world had not, including the largest regions by population like China and India.

In the prior centuries, from the late Middle Ages until the early Twentieth Century, the world had witnessed two important economic divergences. One was the Great Divergence: how the richer parts of Europe (e.g. England) became much richer than the richer parts of the rest of the world (e.g. the Yangtze Delta). And even the poorer parts of Europe became considerably richer than the poorer parts of the rest of the world.

The other was the Little Divergence: how the richer parts of Europe (Northwestern Europe) became much richer than the poorest parts of Europe (Southern and Eastern Europe).

There are different explanations in the literature for why these divergences happened. One explanation is cultural, and states that there is a particular “European” way of thinking and acting, and one manifestation of this was comparatively high female agency and an original European Marriage Pattern (EMP), which can be characterized by later female first marriage ages than other parts of the world, a relatively high celibacy rate, and marriages that were monogamous, exogamous, based on consensus and neo-locality. Regardless of the ultimate cause of these cultural behaviors — I personally believe that political institutions are jointly determined with and can shape culture over time and not just the opposite – it does seem undeniable that there was particular, individualist, comparatively liberal way of thinking and acting in Europe, coming from the Middle Ages already – an European culture, if you will.

This European culture was reflected in comparatively high female agency, by contrast with most other parts of the world. It was, in particular, Western European: the first to propose the EMP was a Hungarian scholar, John Hajnal, who in 1965 proposed what is now known as the Hajnal line: an imaginary line running between Saint Petersburg and Trieste, to the West of which the EMP operated. A good book to understand the deep origins of a Western European mentality and political culture is in my view Siedentop’s Inventing the individual: The Origins of Western Liberalism.

Concerning the Little Divergence, one well-known and increasingly popular explanation for it, associated in particular with Jan Luiten van Zanden and his multiple co-authors, is essentially that Southwestern/Mediterranean Europe was not really part of Western Europe in this EMP sense. According to this explanation, the lower female agency which characterized regions such as Spain, Portugal, or even south France and south Italy explain their comparative underdevelopment. Women, this literature claims, married early, had high fertility (with consequences for low human capital accumulation, of themselves and their children), did not participate in the labor market as much as elsewhere, and faced comparatively high gender wage gaps, which were supposedly determined by social norms, not market forces. A related literature also exists which splits Europe in religious terms, for instance Joseph Henrich argues that the EMP was stronger in Protestant regions of Europe.

What we’ve done in our present paper was show this was not, empirically, the case. Culturally, something we can call “Western Europe” did exist, with variations within, but these differences could not be first-order to explain the Little Divergence. Dennison and Ogilvie had already shown in fact that the parts of Europe where the EMP were historically stronger were not the most successful in a development sense.

But let me be clear. The evidence does not support the view that the Southern or Catholic part of Western Europe discriminated against women more, but it does largely support Hajnal’s original point that there is such a thing as a “Western European” culture reflected in high female agency and the EMP, among other aspects. In the long run, this may have been a key advantage of Western Europe relative to other parts of the world. In this sense my disagreement with Jan Luiten van Zanden – a scholar for whom I have the utmost respect – is only partial.

One of your conclusions is that economic development fosters the improvement of women rights and not the over way round. Is that the explanation for usual misreading of the situation?

The usual explanation – most associated with Jan Luiten van Zanden and his co-authors –  is that the high female agency was a cause of development: the regions of Europe that had it grew more. We are pointing out that, within Western Europe, there were not important historical differences in female agency. Consequently the differences in rights that emerged – mostly only visible only by the early Twentieth century and for the most part gone by the late 1970s – were more in fact a consequence of differential development.

You’ve compared the discrimination against woman in several countries, including, Portugal, England, Netherlands, etc. You’ve found no significant differences in the discrimination towards women. How do you measure that?

We rely on a new dataset of thousands of observations from archival sources covering six centuries, and we complement it with a qualitative discussion of comparative social norms. Compared with Northwestern Europe, women in Portugal faced similar gender wage gaps, married at similar ages, and did not face more restrictions to labor market participation.

What are the influences of the European Marriage Pattern (EMP) according to your findings? 

Please see above

You write that “an explanation for the growing income inequality between European countries during the early modern period, especially from the mid-seventeenth century onward – the ‘Little Divergence’ – must be found elsewhere” than gender discrimination. Do you have leads on what might be the explicative factor?

As I mentioned, by the late Middle Ages Western Europe was characterized by an individualist culture that was jointly determined with representative and even proto-democratic political institutions. Parliaments, the judiciary, and the independent power of the Church led to checks and balances to executive power in a way that was particularly Western European and absent from all other parts of the world. Scholars such as Acemoglu and Robinson believe that the Crowns of Spain and Portugal were absolutist already around 1500, but the evidence does not in fact support this claim. Instead, the evidence suggests that Iberia [later] suffered from a resource curse. Note that the second country to have an Industrial Revolution was [Catholic] Belgium, and France followed shortly afterwards. At the same time, Italy and Germany were able to industrialize quickly once they unified politically, in the second half of the nineteenth century.