An Analysis of Cash Waqf Institutions and Real Wages in Ottoman Rumelia, 1500–1914

Abstract

Purpose — This study employs a substantial number of primary sources of cash waqf contracts (waqfiyyas) to conduct a long-term analysis of cash waqf institutions (henceforth abbreviated as cash waqfs) and the real wages of waqf employees in Ottoman Rumelia from the sixteenth century to World War I. Design/Methodology/Approach — The descriptive analysis includes economic variables recorded in contracts. The analysis focuses on the trend of capital levels, profit shares (ribḥ), and numbers of cash waqfs that prevailed over the 50- year sub-period used in the analysis, and the daily wages of five different groups, including imams, muezzins, scholars, trustees and daily workers. Findings — The findings of this study indicate that, despite experiencing a decline in capital and income, cash waqfs in Rumelia paid employees wages close to market wages. It has been observed that although the real purchasing power of employees and their living standards have increased when measured in current Turkish lira and US dollar values, this improvement did not occur during the early twentieth century. Originality/Value — This study conducts a comprehensive and quantitative assessment of the long-term changes in the capital levels and real wages of Rumelia’s cash waqfs, providing a valuable contribution to the field of study. Research Limitations/Implications — The results reveal that the wages of individuals employed in cash waqfs increased from the sixteenth to the late nineteenth century, which may suggest economic growth and rising living standards. These wages were close to market wages paid in Istanbul. During the early twentieth century, real wages decreased, potentially due to a decline in capital levels and external shocks resulting from wars, uprisings and revolutionary movements in Rumelia. Further research that expands the sample size and geographical scope to encompass other regions within the empire would be beneficial. Such an expansion would facilitate the generalisation of the findings obtained in this study.Practical Implications — To guarantee the long-term success and achievement of objectives of contemporary financial institutions that draw inspiration from this historical experience, it is crucial to maintain an efficient balance between wages and income from capital.