by Dish Staff
Stephen Mihm studies it at length:
In 2002, two economic historians, Stanley Engerman and Kenneth Sokoloff, published an influential paper that tried to answer a vexing question: why are some countries in the Americas defined by far more extreme and enduring levels of inequality—and by extension, limited social mobility and economic underdevelopment—than others? The answer, they argued, lay in the earliest history of each country’s settlement. The political and social institutions put in place then tended to perpetuate the status quo. …
Harvard economist Nathan Nunn offered a more detailed statistical analysis of this “Engerman-Sokoloff hypothesis” in a paper first published in 2008. His research confirmed that early slave use in the Americas was correlated with poor long-term growth. More specifically, he examined county-level data on slavery and inequality in the United States, and found a robust correlation between past reliance on slave labor and both economic underdevelopment and contemporary inequality. He disagreed with Engerman and Sokoloff’s claim that it was only large-scale plantation slavery that generated these effects; rather, he found, any kind of slavery seemed to have begotten long-term economic woes.
Nunn also offered a more precise explanation for present-day troubles.