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3. Human capital and Inequality in the Potosi region during the (Post) Silver Boom Period

3.6 Summary and conclusions

We studied in this Chapter the Human Capital formation of the Andean region using three databases: the census of the rural areas of Potosi in the locality of Cerro Rico (1683), the census of La Paz (1684) and the census of Oruro (1735). Using the age heaping technique and numeracy as explanatory variables, we ran five regression models to identify the possible determinants of the Human capital formation. Furthermore, we analyzed the numeracy trends in the region in comparison with two other Latin-American countries. From the data displayed we can arrive at four final remarks.

(1) Our data shows that the reproductions patterns of the Potosi region, La Paz, and Oruro in the 17th century are similar to those of educated women. The high level of numeracy is strongly related to the age of the woman at the first child: the numeracy level is higher when the initiation of fertility is later. This fact was probably a kind of rationality in which the delay to marriage and maternity played a key role regarding educational levels. When we analyze the family size, the data display higher levels of numeracy in those women with fewer children, however, the improvements in numeracy for having smaller families is not so high. In all the models, the female population shows lower levels of numeracy in comparison with the male population. As

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with the reproduction pattern, this inequality reproduces the behavior of the Spanish patriarchal society in which women were relegated regarding Human capital formation.

(2) We found lower numeracy levels in the lower castes of the Inca system (Urinsaya), and the worst numeracy levels in the forastero indios living in La Paz. These remarks show different levels of Human capital formation within the native communities. In this phase of the colonization the differences regarding Human Capital were probably not only linked to the origin (Indio or Spaniard) but with a complex net of social positions in which the Spaniards, indigenous and mestizos occupied different roles concerning society and institutions.

(3) The rural areas of Potosi were the most negatively affected regarding numeracy. Probably the proximity to one of the most productive primary resources of the period was detrimental for Human capital formation.The evidence shows that a large part of the rural areas of Potosi was destined for the forced migration to the Mita and apparently the migrants were the lower-qualified laborers. The opposites were the forasteros indios of La Paz and the workers of Oruro.

The evidence shows that the poorest levels of Human Capital were the forasteros indios because they escaped from the Mita obligations. According to the low numeracy, it is possible to conclude that, for those indigenous, the channels to access basic education might be tough and the labor conditions were weak and unstable.

(4) Oruro shows the highest numeracy within the region and still higher when we compare with two of the late settlement economies in Latin America, Montevideo and Buenos Aires. The democratic tradition of this city, in which the first independence rebellion occurred, could have influenced the Human Capital formation of the inhabitants. Furthermore, the existence of work regulations may have attracted more qualified labor force to the region. That result is controversial if we consider that, today, this area is one of the poorest and most unequal economies in Latin America and the world.

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