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Land Inequality and the Emergence of Human Capital Promoting Institutions

  • Oded Galor

    (Brown University & Hebrew University)

  • Omer Moav

    (Hebrew University)

  • Dietrich Vollrath

    (Brown University)

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.

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Paper provided by EconWPA in its series Development and Comp Systems with number 0502018.

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Length: 45 pages
Date of creation: 22 Feb 2005
Date of revision:
Handle: RePEc:wpa:wuwpdc:0502018
Note: Type of Document - pdf; pages: 45
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