Economic Persistence Despite Adverse Policies: Evidence from Kyrgyzstan

Abstract We study the long-run persistence of relative economic well-being under adverse government policies using a combination historical and contemporaneous data from Kyrgyzstan. After controlling for unobservable local effects, Kyrgyz households in 2010s correlates with early twentieth-century average wealth their tribes. Inequality at tribe level inequality twentieth century. The likely channels are inter-generational transmission human capital, status, political power cultural traits. Transmission material wealth, differences natural endowments or geographic sorting cannot explain persistence.