Income Inequality and Colonialism

36 Pages Posted: 22 Jun 2006

Abstract

This paper proposes that colonialism is a major explanation behind today's differences in income inequality across countries. We argue that income inequality has been higher in the colonies where the percentage of European settlers to total population was higher, as long as Europeans remained a minority. The countries where Europeans became the majority of the population did not suffer from high inequality. These initial differences continue to hold today. The empirical evidence we provide strongly supports our thesis.

Keywords: Colonialism, Inequality, Income Dsitribution

JEL Classification: O15, O13, N90

Suggested Citation

Angeles, Luis, Income Inequality and Colonialism. European Economic Review, Forthcoming, Available at SSRN: https://ssrn.com/abstract=910501

Luis Angeles (Contact Author)

University of Glasgow ( email )

Adam Smith Building
Glasgow, Scotland G12 8RT
United Kingdom

HOME PAGE: http://www.gla.ac.uk/departments/economics/staff/angeles_luis.html

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