Historical Legacies and Their Impact on Human Capital: Comparing Regions within Romania

Abstract

This article asks if the measures of human capital, ethnic diversity, and gender equality from 1930 explain current levels of human capital in Romania, while also assessing the role of macro-regional differences in the manifestation of historical legacies. We focus on human capital, measured by educational attainment and by conscientiousness, a personality trait we estimate using a behavioral measure. The analysis is based on a recent large-scale national survey from 2019–2020 and census data from 1930. We find that contemporary human capital levels are influenced by a combination of factors, including historical human capital levels, ethnic diversity, and gender equality. Additionally, we show that the long-term impact of these factors can vary by region. Specifically, our study identifies four distinct long-term effects within the historical region of Transylvania and two in the rest of the country. In Transylvania, the present educational attainment is shaped by both the 1930 literacy rate and gender equality, while in the other regions, only the literacy rate exerts a statistically significant influence. Similarly, when it comes to current levels of conscientiousness, Transylvania’s levels are affected by both the 1930 literacy rate and ethnolinguistic fractionalization, whereas in the rest of the country, only ethnolinguistic fractionalization has a statistically significant impact.