Human Capital Persistence and Development

60 Pages Posted: 4 Sep 2015

See all articles by Rudi Rocha

Rudi Rocha

Universidade Federal do Rio de Janeiro (UFRJ)

Claudio Ferraz

Pontifical Catholic University of Rio de Janeiro (PUC-Rio)

Rodrigo R. Soares

Columbia University - School of International & Public Affairs (SIPA); Getulio Vargas Foundation (FGV) - Sao Paulo School of Economics; IZA Institute of Labor Economics

Abstract

This paper examines the role of human capital persistence in explaining long-term development. We exploit variation induced by a state-sponsored settlement policy that attracted a pool of immigrants with higher levels of schooling to particular regions of Brazil in the late 19th and early 20th century. We show that municipalities that received settlements experienced increases in schooling that persisted over time. One century after the policy, localities that received state-sponsored settlements had higher levels of schooling and income per capita. We provide evidence that long-run effects were driven by persistently higher supply and use of educational inputs and shifts in the structure of occupations towards skill-intensive sectors.

Keywords: human capital, education, immigration, development

JEL Classification: O15, O18, N36

Suggested Citation

Rocha, Rudi and Ferraz, Claudio and Soares, Rodrigo R., Human Capital Persistence and Development. IZA Discussion Paper No. 9101, Available at SSRN: https://ssrn.com/abstract=2655049

Rudi Rocha

Universidade Federal do Rio de Janeiro (UFRJ) ( email )

Av. Pedro Calmon, 550
Cidade Universitária
Rio de Janeiro - RJ, 21941-901
Brazil

Claudio Ferraz

Pontifical Catholic University of Rio de Janeiro (PUC-Rio) ( email )

Rua Marquas de Sao Vicente, 225
Rio De Janeiro, RJ 22453-900
Brazil

Rodrigo R. Soares (Contact Author)

Columbia University - School of International & Public Affairs (SIPA) ( email )

420 West 118th Street
New York, NY 10027
United States

Getulio Vargas Foundation (FGV) - Sao Paulo School of Economics ( email )

Rua Itapeva 474 s.1202
São Paulo, São Paulo 01332-000
Brazil

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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