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Colonial Institutions, Trade Shocks, and the Diffusion of Elementary Education in Brazil, 1889–1930

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  • Musacchio, Aldo
  • Fritscher, André Martínez
  • Viarengo, Martina

Abstract

In this paper, we examine the role of trade shocks in promoting the diffusion of elementary education in subnational units in Brazil during a period (1889-1930) in which they had relative financial autonomy to collect export taxes and spend on public goods. The argument is that trade shocks affect asymetrically the tax revenues of state governments and, thus, their expenditures on elementary education per capita according to what crop mix they had. We then show that states with more egalitarian and democratic institutions use positive trade shocks to invest in education, while the opposite takes place in states with less democratic institutions (e.g., in states that had more slaves). We also show using OLS and instrumental variables that positive trade shocks increased expenditures on education per capita and led to higher literacy rates and to more schools per children. The resulting distribution of human capital across states persists until today.
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  • Musacchio, Aldo & Fritscher, André Martínez & Viarengo, Martina, 2014. "Colonial Institutions, Trade Shocks, and the Diffusion of Elementary Education in Brazil, 1889–1930," The Journal of Economic History, Cambridge University Press, vol. 74(03), pages 730-766, September.
  • Handle: RePEc:cup:jechis:v:74:y:2014:i:03:p:730-766_00
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    Citations

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    Cited by:

    1. Pawel Bukowski, 2015. "What Determines The Long-Run Persistence of the Empires? The Effect of the Partition of Poland on Education," CEU Working Papers 2015_3, Department of Economics, Central European University.
    2. repec:eee:deveco:v:130:y:2018:i:c:p:173-189 is not listed on IDEAS
    3. Graziella Bertocchi, 2015. "Slavery, racial inequality, and education," IZA World of Labor, Institute for the Study of Labor (IZA), pages 122-122, February.
    4. Graziella Bertocchi, 2016. "The legacies of slavery in and out of Africa," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-19, December.
    5. Gerardo della Paolera & Xavier H. Duran Amorocho & Aldo Musacchio, 2018. "The Industrialization of South America Revisited: Evidence from Argentina, Brazil, Chile and Colombia, 1890-2010," NBER Working Papers 24345, National Bureau of Economic Research, Inc.
    6. Olga Solleder, 2013. "Panel Export Taxes (PET) Dataset: New Data on Export Tax Rates," IHEID Working Papers 07-2013, Economics Section, The Graduate Institute of International Studies.
    7. Graziella Bertocchi, 2016. "The Legacies of Slavery in and out of Africa," Department of Economics 0096, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    8. Bruno Gabriel Witzel de Souza, 2016. "Subsidies to the History of the German-Speaking Immigration to the Province / State of São Paulo, Brazil (1840-1920)," Ibero America Institute for Econ. Research (IAI) Discussion Papers 233, Ibero-America Institute for Economic Research.
    9. Kosec, Katrina, 2011. "Politics and preschool : the political economy of investment in pre-primary education," Policy Research Working Paper Series 5647, The World Bank.
    10. Tomas Cvrcek & Miroslav Zajicek, 2013. "School, what is it good for? Useful Human Capital and the History of Public Education in Central Europe," NBER Working Papers 19690, National Bureau of Economic Research, Inc.
    11. Hallonsten, Jan Simon & Ziesemer, Thomas, 2016. "A semi-endogenous growth model for developing countries with public factors, imported capital goods, and limited export demand," MERIT Working Papers 004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Enriqueta Camps & Stanley L. Engerman, 2016. "The Impact of Race and Inequality on Human Capital Formation in Latin America During the Nineteenth and Twentieth Centuries," Working Papers 885, Barcelona Graduate School of Economics.

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