Inequality in Land Ownership, the Emergence of Human Capital Promoting Institutions, and the Great Divergence

Brown University Economics Working Paper No. 06-14

48 Pages Posted: 22 Feb 2005

See all articles by Oded Galor

Oded Galor

Brown University - Department of Economics; Centre for Economic Policy Research (CEPR)

Omer Moav

University of Warwick - Department of Economics; Centre for Economic Policy Research (CEPR)

Dietrich Vollrath

University of Houston - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: May 30, 2006

Abstract

This research suggests that favorable geographical conditions, that were inherently associated with inequality in the distribution of land ownership, adversely affected the implementation of human capital promoting institutions (e.g., public schooling and child labor regulations), and thus the pace and the nature of the transition from an agricultural to an industrial economy, contributing to the emergence of the Great Divergence in income per capita across countries. The basic premise of this research, regarding the negative effect of land inequality on public expenditure on education is established empirically based on cross-state data from the beginning of the 20th century in the United States.

Keywords: Land inequality, institutions, geography, human capital accumulation, growth

JEL Classification: O10, O40

Suggested Citation

Galor, Oded and Moav, Omer and Vollrath, Dietrich, Inequality in Land Ownership, the Emergence of Human Capital Promoting Institutions, and the Great Divergence (May 30, 2006). Brown University Economics Working Paper No. 06-14. Available at SSRN: https://ssrn.com/abstract=670883 or http://dx.doi.org/10.2139/ssrn.670883

Oded Galor

Brown University - Department of Economics ( email )

Providence, RI 02912
United States

HOME PAGE: http://www.econ.brown.edu/fac/Oded_Galor/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

HOME PAGE: http://www.econ.brown.edu/fac/Oded_Galor/

Omer Moav (Contact Author)

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom

HOME PAGE: http://www2.warwick.ac.uk/fac/soc/economics/staff/academic/moav

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Dietrich Vollrath

University of Houston - Department of Economics ( email )

Houston, TX 77204-5882
United States

HOME PAGE: http://www.uh.edu/~devollra

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