Self-selection of converts is an under-studied explanation of inter-religion socioeconomic status (SES) differences. Inspired by this conjecture, I trace the Coptic-Muslim SES gap in Egypt to self-selection-on-SES during Egypt’s conversion from Coptic Christianity to Islam. Selection was driven by a poll tax on non-Muslims, imposed from 641 until 1856, which induced poorer Copts to convert to Islam leading Copts to shrink into a better-off minority. Using novel data sources, I document that high-tax districts in 641–1100 had in 1848–1868 relatively fewer Copts, but greater SES differentials. Group restrictions on apprenticeships and schooling led the initial selection to perpetuate.
In 1805–1882, Egypt embarked on one of the earliest state industrialization programs. Using a new data source, the Egyptian nineteenth-century population censuses, I examine the impact of the program on the long-standing inter-religious human capital differentials, which were in favor of Christians. I find that there were inter-religious differentials in reaping the benefits (or losses) of industrialization. The first state industrialization wave was “de-skilling” among Muslims but “up-skilling” among Christians, while the second wave was “up-skilling” for both groups. I interpret the results within Lawrence F. Katz and Robert A. Margo (2013) framework of technical change.
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