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Income Inequality and Colonialism

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  • Luis 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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Suggested Citation

  • Luis Angeles, 2005. "Income Inequality and Colonialism," The School of Economics Discussion Paper Series 0543, Economics, The University of Manchester.
  • Handle: RePEc:man:sespap:0543
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    File URL: http://hummedia.manchester.ac.uk/schools/soss/economics/discussionpapers/EDP-0543.pdf
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    References listed on IDEAS

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    2. Grier, Robin M, 1999. "Colonial Legacies and Economic Growth," Public Choice, Springer, vol. 98(3-4), pages 317-335, March.
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    17. Ahluwalia, Montek S., 1976. "Inequality, poverty and development," Journal of Development Economics, Elsevier, vol. 3(4), pages 307-342, December.
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    Citations

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    Cited by:

    1. Angeles, Luis, 2009. "Colonialism, European Descendants and Democracy," SIRE Discussion Papers 2009-50, Scottish Institute for Research in Economics (SIRE).
    2. Angeles, Luis & Neanidis, Kyriakos C., 2009. "Aid effectiveness: the role of the local elite," Journal of Development Economics, Elsevier, vol. 90(1), pages 120-134, September.
    3. repec:ejw:journl:v:12:y:2015:i:3:p:375-399 is not listed on IDEAS
    4. Luis Angeles & Kyriakos C. Neanidis, "undated". "Colonialism, elite Formation and corruption," Working Papers 2011_02, Business School - Economics, University of Glasgow.
    5. Antonio Andres & Carlyn Ramlogan-Dobson, 2011. "Is Corruption Really Bad for Inequality? Evidence from Latin America," Journal of Development Studies, Taylor & Francis Journals, vol. 47(7), pages 959-976.
    6. Luis Angeles, 2011. "Institutions, Property Rights, and Economic Development in Historical Perspective," Kyklos, Wiley Blackwell, vol. 64(2), pages 157-177, May.
    7. Moyo, Dumisani Zondiwe, 2012. "Agricultural Resilience According To Indigenous Knowledge-Based Case Studies And Economic Quantitative International Production Studies: Divergent Realities Or Divergent Representation?," Research Theses 157594, Collaborative Masters Program in Agricultural and Applied Economics.
    8. Kemp-Benedict, Eric, 2011. "Political regimes and income inequality," Economics Letters, Elsevier, vol. 113(3), pages 266-268.
    9. 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, vol. 28(02), pages 253-277, September.
    10. Daniel Oto-Peralías & Diego Romero-Ávila, 2016. "The economic consequences of the Spanish Reconquest: the long-term effects of Medieval conquest and colonization," Journal of Economic Growth, Springer, vol. 21(4), pages 409-464, December.
    11. Rafael Dobado González & Hector García, 2009. "Neither so low nor so short! Wages and heights in eighteenth and early nineteenth centuries colonial Hispanic America," Working Papers del Instituto Complutense de Estudios Internacionales 0914, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    12. Angeles, Luis, 2012. "Is there a role for genetics in economic development?," SIRE Discussion Papers 2012-08, Scottish Institute for Research in Economics (SIRE).
    13. Manthos D. Delis & Iftekhar Hasan & Pantelis Kazakis, 2014. "Bank Regulations and Income Inequality: Empirical Evidence," Review of Finance, European Finance Association, vol. 18(5), pages 1811-1846.
    14. Max Haller & Anja Eder & Erwin Stolz, 2016. "Ethnic Stratification and Patterns of Income Inequality Around the World: A Cross-National Comparison of 123 Countries, Based on a New Index of Historic Ethnic Exploitation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(3), pages 1047-1084, September.
    15. Angeles, Luis, 2012. "On the causes of the African Slave Trade," SIRE Discussion Papers 2012-91, Scottish Institute for Research in Economics (SIRE).
    16. Luis Angeles, 2013. "On the Causes of the A frican Slave Trade," Kyklos, Wiley Blackwell, vol. 66(1), pages 1-26, February.
    17. 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.
    18. Arusha Cooray (University of Wollongong), "undated". "Does Colonialism Exert a Long Term Economic Impact on Adult Literacy?," QEH Working Papers qehwps176, Queen Elizabeth House, University of Oxford.
    19. repec:ucm:wpaper:14-09 is not listed on IDEAS
    20. 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.

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