Job Market Paper

“Breaking the Old Order: Colonial Shocks, Cultural Change, and Economic Trajectories”

Abstract: This paper examines the persistent effects of direct colonial rule compared to indirect colonial rule in Vietnam under French colonialism. Direct colonial rule was characterized by complete foreign control, which eliminated all native institutions, whereas indirect colonial rule indicated incomplete foreign control, with the colonial empire supervising existing local administration. The main results suggest that direct colonial rule has led to positive long run economic development. Using a spatial regression discontinuity approach, I show that household consumption and individual hourly wages are significantly higher in areas previously under direct rule. I hypothesize that direct colonial rule shaped cultural norms and preferences associated with long-term economic growth. Vietnamese precolonial society can be characterized by the concentration of power in the hands of elites, the prevalence of collectivism as a social norm, and a general tendency toward risk aversion. Colonialism broke that old structure, consequentially shifted cultural traits and preferences. To examine the main mechanism, I collected survey data from individuals living in two villages across the historical border between regions subject to direct rule and regions subject to indirect rule. I find that individuals living in the village historically under direct rule are more likely to possess individualism as a cultural trait. Moreover, survey results show that those individuals have a higher willingness to take risks to achieve better economic outcomes. This paper provides evidence that different colonial institutions could positively affect development by shaping certain cultural traits and preferences associated with economic growth.

Presented at: UCLA Anderson, The Institute For The Study Of Religion, Economics & Society, HHDI-NIDE Joint Workshop on Cultural Transmission and Persistence.

Work in Progress

“The Political Economy of Minimum Wages”

“Gender Segregation in the Workplace: Evidence from Internal Labor Markets”

with Bo Cowgill, Zoe Cullen, and Ricardo Perez-Truglia