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The Fruit of the Vine? An Augmented Endowments-Inequality Hypothesis and the Rise of an Elite in the Cape Colony

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  • Johan Fourie
  • Dieter von Fintel

Abstract

The arrival of European settlers at the Cape in 1652 marked the beginning of what would become an extremely unequal society. Comparative analysis reveals that certain endowments exist in societies that experience a 'persistence of inequality'. This paper shows that the emphasis on endowments may be overstated. A more general explanation allows for 'non-tropical products' to contribute to the rise and persistence of an elite, and consequently inequality.

Suggested Citation

  • Johan Fourie & Dieter von Fintel, 2010. "The Fruit of the Vine? An Augmented Endowments-Inequality Hypothesis and the Rise of an Elite in the Cape Colony," WIDER Working Paper Series wp-2010-112, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2010-112
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2010-112.pdf
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    References listed on IDEAS

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    1. Easterly, William, 2007. "Inequality does cause underdevelopment: Insights from a new instrument," Journal of Development Economics, Elsevier, vol. 84(2), pages 755-776, November.
    2. Johan Fourie & Dieter von Fintel, 2010. "The dynamics of inequality in a newly settled, pre-industrial society: the case of the Cape Colony," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 4(3), pages 229-267, October.
    3. Stanley L. Engerman & Kenneth Lee Sokoloff, 2002. "Factor Endowments, Inequality, and Paths of Development Among New World Economies," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2002), pages 41-110.
    4. Claude Ménard (ed.), 2000. "Institutions, Contracts and Organizations," Books, Edward Elgar Publishing, number 1921, June.
    5. Willem Boshoff & Johan Fourie, 2008. "Explaining ship traffic fluctuations in the early Cape settlement: 1652–1793," Working Papers 01/2008, Stellenbosch University, Department of Economics.
    6. Boshoff, Willem H. & Fourie, Johan, 2010. "The significance of the Cape trade route to economic activity in the Cape Colony: a medium-term business cycle analysis," European Review of Economic History, Cambridge University Press, vol. 14(3), pages 469-503, December.
    7. Stanley L. Engerman & Stephen H. Haber & Kenneth L. Sokoloff, 2000. "Inequality, institution and differential paths of growth among New World economies," Chapters, in: Claude Ménard (ed.), Institutions, Contracts and Organizations, chapter 11, Edward Elgar Publishing.
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    Cited by:

    1. Piraino, Patrizio & Muller, Sean & Cilliers, Jeanne & Fourie, Johan, 2013. "The transmission of longevity across generations: The case of the settler Cape Colony," SALDRU Working Papers 113, Southern Africa Labour and Development Research Unit, University of Cape Town.
    2. Gavin Williams, 2013. "Who, Where, and When were the Cape Gentry?," Economic History of Developing Regions, Taylor & Francis Journals, vol. 28(2), pages 83-111, December.
    3. Sophia du Plessis & Ada Jansen & Dieter von Fintel, 2014. "Slave prices and productivity at the Cape of Good Hope from 1700 to 1725: did all settler farmers profit from the trade?," Working Papers 17/2014, Stellenbosch University, Department of Economics, revised 2014.

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