What is the role of a society’s wealth in influencing educational choices? Although the theoretical literature provides several possible answers, from an empirical viewpoint answering this question is not straightforward. Indeed, nowadays such an issue cannot be typically inspected before starting the college, due to the compulsory public education laws in force at lower education levels in nearly all countries. We investigate this problem by employing a unique dataset covering Sicilian wealth shares and primary school enrollment in the year 1858 at municipal level. This represents an ideal setting to study our research question as, at that time, schools at the lowest grade levels were available in almost each Sicilian municipality, but their attendance was not compulsory. Our identification strategy relies on the historical heritage of seismic events in shaping mid-19th century land and property distribution, which allowed for the emergence of a class of “wealthy” households. Results of the analysis show that, even in an almost entirely agrarian society, household wealth played a decisive role in educational choices: an increase of 10% in the share of wealthy households implied an increase of approximately 0.6% of the share of students enrolled in primary schools. We discuss the implications of these results for the existing evidence on the nexus between wealth and education, and provide a number of falsification tests that support our main results. In addition, we document the long-lasting impacts of early wealth conditions on a series of institutional and economic outcomes.
JEL Classification: I24, O15, N93.