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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
Oded Galor
Omar Moav
Dietrich Vollrath

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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.

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Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c011_001.

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Length: 48 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:deg:conpap:c011_001

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

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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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