Capital-Skill Complementarity and the Emergence of Labor Emancipation

Landed elites and education provision in England: evidence from school boards, 1871-99

“…(Cinnirella and Hornung 2016) As explained in Sect. 2, labour coercion is central to the demand mechanism, rationalizing the rural workers' underinvestment in human capital (Ashraf et al 2017). In turn, labour coercion was lower in England than in Prussia, where serfdom was still in use in its eastern territories well into the 19C.…”

“…As a result, rural workers may underinvest in their human capital (Cinnirella and Hornung 2016;Ashraf et al 2017). 12 The testable prediction is that the demand for education is lower where land is more concentrated.…”

“…However, according to the conceptual framework in Sect. 2, land concentration may also affect education through a demand mechanism (Cinnirella and Hornung 2016;Ashraf et al 2017). In detail, the demand for education may be lower among individuals living where land is more concentrated.…”

“…The former emphasizes the landowner's economic incentives to oppose education provision through the political process (Galor et al 2009). The latter, the individuals' underinvestment in human capital in areas where land is concentrated (Cinnirella and Hornung 2016;Ashraf et al 2017). Another mechanism through which landowners may affect education provision is by favouring voluntary vs. board schooling.…”

“…In earlier periods, when industrial demand for human capital was insignificant, and landowners had no direct incentive to block education reforms, the effect appears to be absent. For example,Cvrček (2020) documents that 18C-landowners in the Austrian empire were not hostile to education reforms, and Clark and Gray (2014) that geography and landownership did not substantially affect literacy in 1815-45 in England.7 Galor et al (2009),Cinnirella and Hornung (2016),Ashraf et al (2017).8 See alsoFinley et al (2021) on the confiscation of Church estates in France.…”