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Moved to Poverty? A Legacy of the Apartheid Experiment in South Africa

Author

Listed:
  • Bladimir Carrillo
  • Carlos Charris
  • Wilman Iglesias

Abstract

During the South African apartheid, Black people were forced to move to homelands during the 1960s and 1970s, resulting in one of history's largest segregation policy experiments. We examine how and why relocation to the homelands affected human capital attainment. Exploiting the staggered timing of homeland establishment in a cross-cohort identification strategy, we find that moving to the homelands during childhood significantly reduces educational attainment, labor earnings, and employment rates in adulthood. The data suggest an important role for place effects. Moving to the homelands in childhood implies greater exposure to poorer neighborhoods, and it disproportionally reduces human capital attainment.

Suggested Citation

  • Bladimir Carrillo & Carlos Charris & Wilman Iglesias, 2023. "Moved to Poverty? A Legacy of the Apartheid Experiment in South Africa," American Economic Journal: Economic Policy, American Economic Association, vol. 15(4), pages 183-221, November.
    • Handle: RePEc:aea:aejpol:v:15:y:2023:i:4:p:183-221
    DOI: 10.1257/pol.20210439
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    References listed on IDEAS

    as
    1. Esther Duflo, 2001. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," American Economic Review, American Economic Association, vol. 91(4), pages 795-813, September.
    2. Taryn Dinkelman, 2017. "Long‐run Health Repercussions of Drought Shocks: Evidence from South African Homelands," Economic Journal, Royal Economic Society, vol. 127(604), pages 1906-1939, September.
    3. Taryn Dinkelman, 2017. "Long‐Run Health Repercussions of Drought Shocks: Evidence from South African Homelands," Economic Journal, Royal Economic Society, vol. 127(604), pages 1906-1939.
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    More about this item

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • N37 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Africa; Oceania
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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