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Immigration and human capital: consequences of a nineteenth century settlement policy

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  • Felipe González

    (Pontificia Universidad Católica de Chile)

Abstract

I study a settlement policy implemented by the Chilean government between 1882 and 1904 to analyze the relationship between European immigration and the human capital of natives. Using historical censuses, I show that this policy was successful in recruiting skilled Europeans, who located in different parts of the country. Using a panel data of provinces observed between 1860 and 1920, I find a strong, positive, and robust correlation between recruited Europeans and the human capital of natives. This finding is not driven by changes in the provision of public goods or regional shocks. However, the arrival of Europeans is associated with an increase local economic output 50 years after the policy was terminated. These changes in the local economy, together with narrative historical evidence, suggest that a modernization of economic activities is a potential explanation for the increase in the human capital of natives.

Suggested Citation

  • Felipe González, 2020. "Immigration and human capital: consequences of a nineteenth century settlement policy," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 14(3), pages 443-477, September.
    • Handle: RePEc:spr:cliomt:v:14:y:2020:i:3:d:10.1007_s11698-019-00194-x
    DOI: 10.1007/s11698-019-00194-x
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    Cited by:

    1. Baten, Joerg & Llorca-Jaña, Manuel, 2021. "Inequality, low-intensity immigration and human capital formation in the regions of Chile, 1820-1939," Economics & Human Biology, Elsevier, vol. 43(C).

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    More about this item

    Keywords

    Immigration; Settlements; Human capital; Europeans;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean
    • N96 - Economic History - - Regional and Urban History - - - Latin America; Caribbean
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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