Look again at [Figure 2.1](https://www.core-econ.org/the-economy/book/text/02.html#figure-2-1) and [Figure 2.19](https://www.core-econ.org/the-economy/book/text/02.html#figure-2-19) showing graphs of real wages in England between 1300 and 2000.

You are also told the following facts:

During the bubonic plague of 1348 and 1351, between one-quarter and one-third of Europe’s population died.

In the seventeenth and eighteenth centuries, the wages of unskilled workers relative to the incomes of land owners were only one-fifth of what they had been in the sixteenth century.

What can we conclude from this information?


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During the Black Death, the reduction in the farming workforce led to increased agricultural productivity, as per the principle of diminishing average labor product. Landowners and farmers who paid fixed rent to landlords experienced improved conditions. Urban employers also had to raise wages to attract workers from rural areas.

[Figure 2.19](https://www.core-econ.org/the-economy/book/text/02.html#figure-2-19)
 demonstrates the causal relationships between the Malthusian model's key aspects and the influence of political developments in response to, and as drivers of, economic changes. Despite King Edward's attempts to control wage growth through legislation in 1349 and 1351, the decreased labor supply ultimately overpowered political efforts, resulting in continued wage increases and empowering peasants to demand greater freedoms and reduced taxes during the Peasants' Revolt of 1381.

As the population rebounded in the 16th century, the labor supply expanded, causing wages to drop. This evidence aligns with the Malthusian model's explanation of England's history during that period.

Black Death, Wages, and Malthusian Model:

To cite The Economy, we suggest combining the referencing style for an ebook and treating each unit as a chapter, for instance (using Harvard style): Bowles, S., Carlin, W. and Stevens, M. (2017). ‘Property and power: Mutual gains and conflicts’. Unit 5 in The CORE team, The Economy. Available at: https://www.core-econ.org. [Accessed on (date)].

https://www.core-econ.org/the-economy/v1/book/text/0-3-contents.html

CORE Econ - The Economy 1.0

What can we conclude from this information?

We've primarily concentrated on farmers and salaried workers, but not everyone in the economy would be ensnared in a Malthusian trap. As the population expands, so does the demand for food. Consequently, the finite land used for food production should grow more valuable. In a Malthusian setting, a rising population should thus result in a better economic standing for landowners.

This was the case in England, where [Figure 2.19](https://www.core-econ.org/the-economy/book/text/02.html#figure-2-19) demonstrates that real wages didn't grow significantly in the long term (remaining similar in 1800 as they were in 1450). The income disparity between landowners and laborers also widened. In the 17th and 18th centuries, unskilled English workers' wages were just one-fifth of what they had been in the 16th century compared to landowners' incomes.

However, despite wages being low relative to landlords' rents, a different comparison of relative prices was crucial to England's liberation from the Malthusian trap. Wages stayed high compared to the price of coal ([Figure 2.10](https://www.core-econ.org/the-economy/book/text/02.html#figure-2-10)) and even rose in relation to the expense of utilizing capital goods ([Figure 2.11](https://www.core-econ.org/the-economy/book/text/02.html#figure-2-11)), as previously noted.

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