Income and Inequality in the Aztec Empire on the Eve of the Spanish Conquest

Today, Latin American countries are characterized by relatively high levels of economic inequality. This circumstance has often been considered a long-run consequence of the Conquest and of the highly extractive institutions imposed by the colonizers. We show that, in the case of the Aztec Empire, high inequality predates the Spanish Conquest. We reach this conclusion by estimating levels of income inequality and of imperial extraction across the Empire. We find that the richest 1% earned 41.8% of the total income, while the income share of the poorest 50% was just 23.3%. We also argue that those provinces which had resisted the Aztec expansion suffered from relatively harsh conditions, including higher taxes, in the context of the imperial system – and were the first to rebel, allying themselves with the Spaniards. After the Spanish-Aztec War, the colonial elites inherited pre-existing extractive institutions, and added additional layers of social and economic inequality. <br><br><br><br><br>