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Human Capital Persistence and Development

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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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    Cited by:

    1. Dupraz, Yannick, 2017. "French and British Colonial Legacies in Education: Evidence from the Partition of Cameroon," CAGE Online Working Paper Series 333, Competitive Advantage in the Global Economy (CAGE).
    2. 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(3), pages 30-34, October.
    3. 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.
    4. Oriana Bandiera & Myra Mohnen & Imran Rasul & Martina Viarengo, 2015. "Nation-Building Through Compulsory Schooling During the Age of Mass Migration," STICERD - Economic Organisation and Public Policy Discussion Papers Series 057, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    5. Murard, Elie & Sakalli, Seyhun Orcan, 2018. "Mass Refugee Inflow and Long-Run Prosperity: Lessons from the Greek Population Resettlement," IZA Discussion Papers 11613, Institute for the Study of Labor (IZA).
    6. Timothy J Hatton & Zachary Ward, 2018. "International Migration in the Atlantic Economy 1850 - 1940," CEH Discussion Papers 02, Centre for Economic History, Research School of Economics, Australian National University.
    7. repec:bla:ehsrev:v:72:y:2019:i:1:p:3-31 is not listed on IDEAS
    8. Blanca Sánchez‐Alonso, 2019. "The age of mass migration in Latin America," Economic History Review, Economic History Society, vol. 72(1), pages 3-31, February.

    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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