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Words: | Submitted: Tue Jun 20 2006
... base year. Difficulties and limitations exist with the use of index numbers as we will see below, especially with regards to selecting appropriate base years as well as making decisions about weights in forming a composite index. The article by Peter Lindert and Jeffrey Williamson 'English Workers' Living Standards During the Industrial Revolution: A New Look' provides new evidence to the standard of living debate in an attempt to offer a clearer representation on workers prosperity after 1750. New wage data and new employment weights make it possible to assess nominal earnings growth from 1755 to1851 for a number of labouring classes: farm labourers, urban workers, white collar and blue-collar workers. New cost of living data, increased by rents make it possible to assess real earnings growth. However, Lindert and Williamson's use of index data has caused a number of criticisms from a number of economists, namely Flinn and Crafts. Both ...
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