Friends from afar: The Taiping Rebellion, cultural proximity and primary schooling in the Lower Yangzi, 1850–1949

This paper tests the hypothesis that the cultural distance between migrants and natives impedes the provision of public goods. The Taiping Rebellion was a shock that caused groups without a history of shared governance to be relocated to the same region. We use a unique historical dataset of surnames in the Lower Yangzi of China to construct a measure of the cultural distance between migrants and natives (MNCD). We find that a one-standard-deviation increase in the MNCD is associated with a decrease of over 0.19 public primary schools per 10,000 persons in the early twentieth century. The results survive various robustness checks and an instrumental variable analysis that exploits the pre-existing cultural distances between the native and the nearby population. Evidence from the timing of when the MNCD takes effect suggests that the primary mechanism runs from migrant-native cultural distance through quality of collective decision-making to modern primary education.