Arbeitspapier

The colonial origins of inequality: exploring the causes and consequences of land distribution

Recent literature has pointed out that the historical distribution of assets is crucial in explaining the observed rigidity in post-war income inequality levels. This paper explores the causes and consequences of historical land distribution employing new and existing estimates of land inequality in cross-country OLS regressions. The two central questions addressed are 1) what explains the cross-country variation in land inequality at the end of the colonial period? 2) how does initial land inequality relate to current income inequality? It is shown that land distribution is determined by (colonial) institutions responding to relative factor endowments and natural geographic conditions as the disease environment and the feasibility to grow particular food- or cash-crops. Local conditions and institutional responses differed largely from region to region. Whereas the direct relation between initial land inequality and income inequality appears to be weak, controlling for (colonial) institutional variables reveals a strong relation between initial land inequality and current (1990's) income inequality. High levels of income inequality, specifically in Sub Saharan Africa and Latin America, are shown to have fundamentally different colonial origins.

Language
Englisch

Bibliographic citation
Series: IAI Discussion Papers ; No. 119

Classification
Wirtschaft
Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: General, International, or Comparative
Economic History: Agriculture, Natural Resources, Environment, and Extractive Industries: General, International, or Comparative
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Comparative Analysis of Economic Systems

Event
Geistige Schöpfung
(who)
Frankema, E.H.P.
Event
Veröffentlichung
(who)
Georg-August-Universität Göttingen, Ibero-America Institute for Economic Research (IAI)
(where)
Göttingen
(when)
2005

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Frankema, E.H.P.
  • Georg-August-Universität Göttingen, Ibero-America Institute for Economic Research (IAI)

Time of origin

  • 2005

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