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Human Capital Persistence and Development

Author

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  • Rudi Rocha
  • Claudio Ferraz
  • Rodrigo R. Soares

Abstract

This paper documents the persistence of human capital over time and its association with long-term development. We exploit variation induced by a state-sponsored settlement policy that attracted immigrants with higher levels of schooling to particular regions of Brazil in the late nineteenth and early twentieth century. We show that one century after the policy, municipalities that received settlements had higher levels of schooling and higher income per capita. We provide evidence that long-run effects worked through higher supply of educational inputs and shifts in the structure of occupations toward skill-intensive sectors.

Suggested Citation

  • Rudi Rocha & Claudio Ferraz & Rodrigo R. Soares, 2017. "Human Capital Persistence and Development," American Economic Journal: Applied Economics, American Economic Association, vol. 9(4), pages 105-136, October.
  • Handle: RePEc:aea:aejapp:v:9:y:2017:i:4:p:105-36
    Note: DOI: 10.1257/app.20150532
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    6. Sandra Sequeira & Nathan Nunn & Nancy Qian, 2017. "Migrants and the Making of America: The Shortand Long-Run Effects of Immigration During the Age of Mass Migration," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(03), pages 30-34, October.
    7. Amanda Guimbeau & Nidhiya Menon & Aldo Musacchio, 2020. "The Brazilian Bombshell? The Long-Term Impact of the 1918 Influenza Pandemic the South American Way," NBER Working Papers 26929, National Bureau of Economic Research, Inc.
    8. Oriana Bandiera & Myra Mohnen & Imran Rasul & Martina Viarengo, 2019. "Nation-building Through Compulsory Schooling during the Age of Mass Migration," Economic Journal, Royal Economic Society, vol. 129(617), pages 62-109.
    9. Evan Wigton-Jones, 2020. "Legacies of inequality: the case of Brazil," Journal of Economic Growth, Springer, vol. 25(4), pages 455-501, December.
    10. Blum, Matthias & Krauss, Karl-Peter & Myeshkov, Dmytro, 2021. "Human capital transfer of German-speaking migrants in Eastern Europe, 1780s-1820s," QUCEH Working Paper Series 2021-03, Queen's University Belfast, Queen's University Centre for Economic History.
    11. Dupraz, Yannick, 2019. "French and British Colonial Legacies in Education: Evidence from the Partition of Cameroon," The Journal of Economic History, Cambridge University Press, vol. 79(3), pages 628-668, September.
    12. José Garcia Montalvo & Marta Reynal-Querol, 2020. "Colonization, early settlers and development: The case of Latin America," Economics Working Papers 1729, Department of Economics and Business, Universitat Pompeu Fabra.
    13. José García-Montalvo & Marta Reynal-Querol, 2020. "Colonization, Early Settlers and Development: The Case of Latin America," Working Papers 1189, Barcelona Graduate School of Economics.
    14. 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.
    15. Monasterio, Leonardo & Lopes, Daniel, 2018. "Brasil sem imigrantes: estimativas de longo prazo baseadas em microdados [Brazil without immigrants: microdata long run estimates]," MPRA Paper 88170, University Library of Munich, Germany.
    16. Craig, J. Dean & Faria, Anna B., 2021. "Immigrant nationality and human capital formation in Brazil," International Journal of Educational Development, Elsevier, vol. 80(C).
    17. Palma, Nuno & Papadia, Andrea & Pereira, Thales & Weller, Leonardo, 2020. "Slavery and development in nineteenth century Brazil," CAGE Online Working Paper Series 523, Competitive Advantage in the Global Economy (CAGE).
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    19. Bharadwaj, Prashant & Ali Mirza, Rinchan, 2019. "Displacement and development: Long term impacts of population transfer in India," Explorations in Economic History, Elsevier, vol. 73(C), pages 1-1.

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    More about this item

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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