The long-lasting effect of feudal human capital: Insights from Vietnam

Abstract

This study investigates the long-term effect of the density of the elite — the most highly educated — during the period 1075–1919 (the feudal period in Vietnam) on today's educational attainment and economic performance in Vietnam. We use data on the nearly 20,000 elite individuals, including 17,061 junior bachelors and bachelors, and 2895 doctors (equivalent to individuals with a PhD degree) who passed the Imperial Examination (1075–1919), and employ the distance to the nearest examination centers as an instrumental variable for the density of elites. Our findings indicate that elite density continues to influence educational attainment today, which in turn leads to better employment opportunities and higher wages. Individuals from areas with higher elite density have shifted away from agriculture into wage-paying jobs, ultimately increasing their household income.