The income distributional consequences of agrarian tariffs in Sweden on the eve of World War I

Abstract

After 1870 Swedish agriculture was transformed in the direction of more animal husbandry. Small farmers in particular specialized in animal produce. Yet, agricultural protectionism primarily served the interest of large landowners specializing in bread-grain production. The paper explores the impact of agrarian tariffs on the factor rewards of landowners, capitalists and workers. Landowners predictably benefited from agrarian tariffs, the more so if they specialized in bread-grain, as did rural workers. With an integrated ruralurban labour market real incomes of urban workers would have come under pressure if agrarian tariffs had been dismantled while capitalists would have been little affected.