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Land Inequality and the Emergence of Human Capital Promoting Institutions

Author

Listed:
  • Oded Galor

    (Brown University & Hebrew University)

  • Omer Moav

    (Hebrew University)

  • Dietrich Vollrath

    (Brown University)

Abstract

This research suggests that favorable geographical conditions, that were inherently associated with inequality in the distribution of land ownership, adversely affected the implementation of human capital promoting institutions (e.g., public schooling and child labor regulations), and thus the pace and the nature of the transition from an agricultural to an industrial economy, contributing to the emergence of the Great Divergence in income per capita across countries. The basic premise of this research, regarding the negative effect of land inequality on public expenditure on education is established empirically based on cross-state data from the beginning of the 20th century in the United States.

Suggested Citation

  • Oded Galor & Omer Moav & Dietrich Vollrath, 2005. "Land Inequality and the Emergence of Human Capital Promoting Institutions," Development and Comp Systems 0502018, EconWPA.
  • Handle: RePEc:wpa:wuwpdc:0502018
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    References listed on IDEAS

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    More about this item

    Keywords

    Land Inequality; Institutions; Geography; Human capital accumulation; Growth;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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