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Income Inequality and Colonialism

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  • L Angeles

Abstract

This paper proposes that Colonialism is a major explanation behind today’s differences in Income Inequality among countries. We argue that colonies that received an important number of European settlers were characterized by a concentration of economic and political power in the hands of these last ones. Moreover, European settlers later achieved independence from the metropolis and were able to prolong the status quo. Colonies where Europeans were much less present did not develop such strong inequality. The empirical evidence we provide strongly supports our thesis.

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File URL: http://www.socialsciences.manchester.ac.uk/medialibrary/cgbcr/discussionpapers/dpcgbcr66.pdf
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Paper provided by Economics, The Univeristy of Manchester in its series Centre for Growth and Business Cycle Research Discussion Paper Series with number 66.

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Length: 33 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:man:cgbcrp:66

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  1. François Bourguignon & Christian Morrisson, 2002. "Inequality Among World Citizens: 1820-1992," American Economic Review, American Economic Association, American Economic Association, vol. 92(4), pages 727-744, September.
  2. Bertocchi, Graziella & Canova, Fabio, 2002. "Did colonization matter for growth?: An empirical exploration into the historical causes of Africa's underdevelopment," European Economic Review, Elsevier, Elsevier, vol. 46(10), pages 1851-1871, December.
  3. George Clarke & Lixin Colin Xu & Heng-fu Zou, 2013. "Finance and Income Inequality: Test of Alternative Theories," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 493-510, November.
  4. Grier, Robin M, 1999. " Colonial Legacies and Economic Growth," Public Choice, Springer, Springer, vol. 98(3-4), pages 317-35, March.
  5. Anand, Sudhir & Kanbur, S. M. R., 1993. "Inequality and development A critique," Journal of Development Economics, Elsevier, Elsevier, vol. 41(1), pages 19-43, June.
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  7. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, Elsevier, vol. 57(2), pages 259-287.
  8. Oded_Galor & Andrew Mountford, 2004. "Trading Population for Productivity," Working Papers 2004-16, Brown University, Department of Economics.
  9. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, American Economic Association, vol. 91(5), pages 1369-1401, December.
  10. Hongyi Li & Lyn Squire & Heng-fu Zou, 1998. "Explaining International and Intertemporal Variations in Income Inequality," CEMA Working Papers, China Economics and Management Academy, Central University of Finance and Economics 73, China Economics and Management Academy, Central University of Finance and Economics.
  11. Matthew Higgins & Jeffrey G. Williamson, 1999. "Explaining Inequality the World Round: Cohort Size, Kuznets Curves, andOpenness," NBER Working Papers 7224, National Bureau of Economic Research, Inc.
  12. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, Elsevier, vol. 40(1), pages 25-52, February.
  13. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers, Harvard - Institute for International Development 537, Harvard - Institute for International Development.
  14. Stanley L Engerman & Kenneth L. Sokoloff, 2002. "Factor Endowments, Inequality, and Paths of Development Among New World Economics," NBER Working Papers 9259, National Bureau of Economic Research, Inc.
  15. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," NBER Working Papers 8460, National Bureau of Economic Research, Inc.
  16. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 101(2), pages 274-98, April.
  17. Ahluwalia, Montek S., 1976. "Inequality, poverty and development," Journal of Development Economics, Elsevier, Elsevier, vol. 3(4), pages 307-342, December.
  18. Galor, Oded & Zeira, Joseph, 1988. "Income Distribution and Macroeconomics," MPRA Paper 51644, University Library of Munich, Germany, revised 01 Sep 1989.
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  20. Bourguignon, Francois & Verdier, Thierry, 2000. "Oligarchy, democracy, inequality and growth," Journal of Development Economics, Elsevier, Elsevier, vol. 62(2), pages 285-313, August.
  21. Bourguignon, Francois & Morrisson, Christian, 1998. "Inequality and development: the role of dualism," Journal of Development Economics, Elsevier, Elsevier, vol. 57(2), pages 233-257.
  22. Thorsten Beck & Asli Demirgüç-Kunt & Ross Levine, 2000. "A New Database on the Structure and Development of the Financial Sector," World Bank Economic Review, World Bank Group, World Bank Group, vol. 14(3), pages 597-605, September.
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Citations

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Cited by:
  1. Angeles, Luis & Neanidis, Kyriakos C., 2009. "Aid effectiveness: the role of the local elite," Journal of Development Economics, Elsevier, Elsevier, vol. 90(1), pages 120-134, September.
  2. Dobado González, Rafael & García Montero, Héctor, 2010. "Colonial Origins of Inequality in Hispanic America? Some Reflections Based on New Empirical Evidence," Revista de Historia Económica, Cambridge University Press, Cambridge University Press, vol. 28(02), pages 253-277, September.
  3. Carlyn Dobson & Antonio Rodríguez, 2010. "Is Corruption Really Bad for Inequality? Evidence from Latin America," Development Research Working Paper Series 02/2010, Institute for Advanced Development Studies.
  4. Antonio Rodriguez & Carlyn Ramlogan, 2007. "Corruption, privatisation and the distribution of income in Latin America," Development Research Working Paper Series 09/2007, Institute for Advanced Development Studies.
  5. Angeles, Luis, 2011. "Institutions, Property Rights, and Economic Development in Historical Perspective," SIRE Discussion Papers, Scottish Institute for Research in Economics (SIRE) 2011-08, Scottish Institute for Research in Economics (SIRE).
  6. Luis Angeles, 2009. "Colonialism, European descendants and democracy," Working Papers, Business School - Economics, University of Glasgow 2009_33, Business School - Economics, University of Glasgow.
  7. Roe, Mark J. & Siegel, Jordan I., 2011. "Political instability: Effects on financial development, roots in the severity of economic inequality," Journal of Comparative Economics, Elsevier, vol. 39(3), pages 279-309, September.
  8. Arusha Cooray (University of Wollongong), . "Does Colonialism Exert a Long Term Economic Impact on Adult Literacy?," QEH Working Papers qehwps176, Queen Elizabeth House, University of Oxford.
  9. Luis Angeles, . "On the causes of the African Slave Trade," Working Papers, Business School - Economics, University of Glasgow 2012_15, Business School - Economics, University of Glasgow.
  10. Luis Angeles, 2012. "Is there a role for genetics in economic development?," Working Papers, Business School - Economics, University of Glasgow 2012_02, Business School - Economics, University of Glasgow.

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