This paper looks at an episode where, in the midst of a mass inflow of European immigrants to the Brazilian state of São Paulo, those with higher education were channeled into state sponsored settlements. This centralized policy pushed a similar colonization framework into regions with diverse conditions. We follow 125 years of data to characterize the long run impact of settlements. In 1872, before implementation, the areas that were to receive settlements were indistinguishable from other areas. In 1920, immediately after the establishment of settlements, the population living in these areas had higher educational levels than elsewhere in the state. At that moment, settlements were still similar to other areas, but for educational levels. In 1940 and 2000, after settlements had ceased to exist, populations living in these areas continued to be more educated. Local communities that developed from settlements used more educational inputs throughout the period and, over time, shifted occupations towards human capital intensive activities. In 2000, areas corresponding to previous settlements had income per capita 15% higher than the remainder of the state. The evidence indicates that the educational composition of immigrants persisted through time and led, in the long run, to higher levels of development.
Presented by:
Rodrigo Soares (Sao Paulo School of Economics)
Date & time:
October 8, 2014 11:00 am - October 8, 2014 12:00 pm
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