Working Paper Series,
Uppsala University, Department of Economics

Abstract: This paper provides evidence on the long run relationship between European settlers presence and education levels in Algeria. To correct for endogenous sorting of settlers (and natives) into regions I rely on the fact that proximity to the Mediteranean coast determined the timing of conquest and therefore settlements’ size. The main finding indicates that the colonial policy of discrimination explains

a large fraction of the disparities in literacy across regions through 1998.However this effect declines significantly over time. I point out three factors that may explain this declining effect: (1) the massive funds allocated to the

education sector post-war; (2) the role of the market via migration; (3) social interaction effects whereby natives progressively adopted education and fertility norms of the settlers.

Keywords: French rule; Discrimination; Education; Social Interactions

JEL-codes: I29; I38; O15

19 pages, January 15, 2007

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