The Intergenerational Effects of a Large Wealth Shock: White Southerners after the Civil War

The nullification of slave wealth after the US Civil War (1861–1865) was one largest episodes compression in history. We document that White Southern households owned more slaves 1860 lost substantially by 1870, relative to had been equally wealthy before war. Yet, their sons almost entirely recovered from this shock 1900, and grandsons completely converged 1940. Marriage networks connections other elite families may have aided recovery, whereas transmission entrepreneurship skills appear less central. (JEL D31, G51, J15, J24, N31, N32)