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

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Author Info
Galor, Oded
Moav, Omer
Vollrath, Dietrich

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Abstract

This paper suggests that inequality in the distribution of land ownership adversely affected the emergence of human capital promoting institutions (e.g., public schooling) 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 prediction of the theory regarding the adverse effect of the concentration of land ownership on education expenditure is established empirically based on evidence from the beginning of the 20th century in the US.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6751.

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Date of creation: Mar 2008
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Handle: RePEc:cpr:ceprdp:6751

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Related research
Keywords: Geography; Great Divergence; Growth; Human capital; Institutions; Land Inequality;

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Find related papers by JEL classification:
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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