*The European Guilds: An Economic Analysis*

That is the new and highly comprehensive book by Sheilagh Ogilvie, and it is likely to stand as one of the more important works of economic history from the last decade.  Here is one opening summary bit:

…my own reading of the evidence is that a common theme underlies guilds’ activities: guilds tended to do what is best for guild members.  In some cases, what guilds did brought certain benefits for the broader public.  But overall, the actions guilds took mainly had the effect of protecting and enriching their members at the expense of consumers and non-members; reducing threats from innovators, competitors, and audacious upstarts; and generating sufficient rents to pay off the political elites that enforced guilds’ privileges and might otherwise have interfered with them.

And yes she really does show this, with a remarkable assemblage of data.  For instance:

…the 14 guilds in Table 2.4 devoted an average of 28 per cent of their expenditures to lobbying.  However, the average was 45 per cent across the five poor guilds and just 14 per cent across the eight rich ones.


Guild mastership fees could not be paid off in a couple of weeks of work.  Across these 1,102 observations, the average mastership fee consumed 276 days’ wages for a labourer, 215 days for a journeyman, and 1543 days for a guild master.

Operating licenses were expensive too (pp.125-126).  There are more “Ands”:

Guild entry barriers pushed people into illicit production, as emerges from 14 per cent of observations in Table 3.15.


Guild members whose trades stagnated could not legally diversify to other guilded work…

On top of that, guilds typically restricted the training of women and would not let them enter the relevant sectors.  And:

The amount of attention guilds devoted to product quality in their ordinances does not suggest they regarded it as a major concern.

Ouch!  Ogilivie also concludes, and demonstrates using data, that guilds did not promote human capital accumulation or innovation.  The various revisionist defenses of guilds, as produced over the years, basically seem to be wrong.

You can pre-order the book here.


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