Human Capital Persistence and Development

Author:

Rocha Rudi1,Ferraz Claudio2,Soares Rodrigo R.3

Affiliation:

1. Institute of Economics, Federal University of Rio de Janeiro, Av. Pasteur 250, 22290-240, Rio de Janeiro, RJ, Brazil (email: )

2. Department of Economics, Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Rua Marquês de São Vicente 225, Rio de Janeiro, RJ, 22453-900, Brazil and BREAD (email: )

3. Columbia University, 420 W. 118th Street, New York, NY, 10027 and Sao Paulo School of Economics-FGV (email: )

Abstract

This paper documents the persistence of human capital over time and its association with long-term development. We exploit variation induced by a state-sponsored settlement policy that attracted immigrants with higher levels of schooling to particular regions of Brazil in the late nineteenth and early twentieth century. We show that one century after the policy, municipalities that received settlements had higher levels of schooling and higher income per capita. We provide evidence that long-run effects worked through higher supply of educational inputs and shifts in the structure of occupations toward skill-intensive sectors. (JEL I26, J22, J24, J61, N36, O15, Z13)

Publisher

American Economic Association

Subject

General Economics, Econometrics and Finance

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