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Income Inequality and Colonialism

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  • L Angeles

Abstract

This paper proposes that Colonialism is a major explanation behind today’s differences in Income Inequality among countries. We argue that colonies that received an important number of European settlers were characterized by a concentration of economic and political power in the hands of these last ones. Moreover, European settlers later achieved independence from the metropolis and were able to prolong the status quo. Colonies where Europeans were much less present did not develop such strong inequality. The empirical evidence we provide strongly supports our thesis.

Suggested Citation

  • L Angeles, 2005. "Income Inequality and Colonialism," Centre for Growth and Business Cycle Research Discussion Paper Series 66, Economics, The University of Manchester.
    • Handle: RePEc:man:cgbcrp:66
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