Persistent Specialization and Growth

Riccardo Bianchi-Vimercati, Giampaolo Lecce and Matteo Magnaricotte
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Matteo Magnaricotte: University of Groningen

No 2022012-EEF, Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management)

Abstract: Land distribution has ambiguous effects on structural transformation: large landowners can slow industrialization by limiting the provision of education, but larger scale andlocal market power might accelerate the mechanization of production. We examine theeffects of redistribution following the Italian 1950 land reform and find that redistribution led to less industrialization. We explain this finding with a reduction in the scale ofoperations and a more intensive use of family labor. Agricultural specialization persistedfor at least 50 years, consistent with models of occupational inheritance. Finally, we showthat expropriated areas had lower growth during 1970-2000.

Date: 2022
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