Income Inequality Under Colonial Rule: Evidence from French Algeria, Cameroon, Tunisia, and Vietnam and Comparisons with the British Empire 1920-1960

CEPR Discussion Paper No. DP14969

57 Pages Posted: 27 Jul 2020 Last revised: 16 Aug 2020

See all articles by Facundo Alvaredo

Facundo Alvaredo

Ecole Normale Superieure (PSE-ENS)

Denis Cogneau

Paris School of Economics (PSE)

Thomas Piketty

Paris School of Economics (PSE)

Date Written: June 2020

Abstract

In this article we assess income inequality across French and British colonial empires between 1920 and 1960. For the first time, income tax tabulations are exploited to assess the case studies of French Algeria, Tunisia, Cameroon, and Vietnam, which we compare to British colonies and dominions. As measured by top income shares, inequality was high in colonies. It fell after WWII, but stabilized at much higher levels than in mainland France or the United Kingdom in the 1950s. European settlers or expatriates comprised the bulk of top income earners, and only a minority of autochthons could compete in terms of income, particularly in Africa. Top income shares were no higher in settlement colonies, not only because those territories were wealthier but also because the average European settler was less rich than the average European expatriate. Inequality between Europeans in colonies was similar to (or even below) that of the metropoles. In settlement colonies, the post-WWII fall in income inequality can be explained by a fall in inequality between Europeans, mirroring that of the metropoles, and does not imply that the European/autochthon income gap was reduced.

Keywords: Africa, Asia, Colonialism, inequality, Top incomes

JEL Classification: N3, N35, N37, O15, O53, O55

Suggested Citation

Alvaredo, Facundo and Cogneau, Denis and Piketty, Thomas, Income Inequality Under Colonial Rule: Evidence from French Algeria, Cameroon, Tunisia, and Vietnam and Comparisons with the British Empire 1920-1960 (June 2020). CEPR Discussion Paper No. DP14969, Available at SSRN: https://ssrn.com/abstract=3650081

Facundo Alvaredo (Contact Author)

Ecole Normale Superieure (PSE-ENS) ( email )

48 Boulevard Jourdan
75014 Paris
France

Denis Cogneau

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Thomas Piketty

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

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