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The Colonial Origins of the Divergence in the Americas: A Labor Market Approach

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  • Allen, Robert C.
  • Murphy, Tommy E.
  • Schneider, Eric B.

Abstract

This article introduces the Americas in the Great Divergence debate by measuring real wages in various North and South American cities between colonization and independence, and comparing them to Europe and Asia. We find that for much of the period, North America was the most prosperous region of the world, while Latin America was much poorer. We then discuss a series of hypotheses that can explain these results, including migration, the demography of the American Indian populations, and the various labor systems implemented in the continent.

Suggested Citation

  • Allen, Robert C. & Murphy, Tommy E. & Schneider, Eric B., 2012. "The Colonial Origins of the Divergence in the Americas: A Labor Market Approach," The Journal of Economic History, Cambridge University Press, vol. 72(4), pages 863-894, December.
    • Handle: RePEc:cup:jechis:v:72:y:2012:i:04:p:863-894_00
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    References listed on IDEAS

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    1. Williamson, Jeffrey G., 1999. "Real wages, inequality and globalization in latin america before 1940," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 17(S1), pages 101-142, March.
    2. Aghion,Philippe & Williamson,Jeffrey G., 1999. "Growth, Inequality, and Globalization," Cambridge Books, Cambridge University Press, number 9780521659109.
    3. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
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    More about this item

    JEL classification:

    • N11 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: Pre-1913
    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean
    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
    • N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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