States, Institutions, and Literacy Rates in Early-Modern Western Europe

Tyrel C Eskelson

doi:10.5539/jel.v10n2p109

Abstract

The purpose of the paper is to develop the theory that structural or procedural changes in institutions precede changes in education in a society. It examines the development of pre-modern institutions in Western Europe in the 16th and 17th centuries and the influences this had on growth in literacy rates within these states. Literacy rates in Western European countries during the Middle Ages were below twenty percent of the population. For most countries, literacy rates did not experience significant increases until the Enlightenment and industrialization. Two early exceptions to this broad trend were the Netherlands and England, which had achieved literacy rates above fifty percent of their populations by the mid-seventeenth century. The explanations for these divergent trends are the structural changes in formal institutions that embodied capital markets, protected private property, and overall established the initial steps in developing modern political institutions. This created incentives to invest more in schools per capita as well as incentives for a middle class to invest more in literacy and numeracy skills for a market-exchange economy that was becoming more specialized in division of labor.

Highlights

Two early exceptions to this broad trend were the Netherlands and England, which had achieved literacy rates above fifty percent of their populations by the mid-seventeenth century. The explanations for these divergent trends are the structural changes in formal institutions that embodied capital markets, protected private property, and overall established the initial steps in developing modern political institutions. This created incentives to invest more in schools per capita as well as incentives for a middle class to invest more in literacy and numeracy skills for a market-exchange economy that was becoming more specialized in division of labor
This paper examines the historic relationship between the institutions of a society and education, and develops the argument that structural or procedural changes in institutions precede changes in education
Efficient institutions that upheld the rule of law and the protection of property rights allowed the scale of commerce to expand, provided for more people living in market towns and cities, and made the skills and knowledge learned from formal education more beneficial

Summary

Introduction

This paper examines the historic relationship between the institutions of a society and education, and develops the argument that structural or procedural changes in institutions precede changes in education. The specific argument is that in the early-modern period between 1500 and 1700, literacy rates in the Netherlands and England experienced divergent growth from the rest of Western Europe due to their preceding establishment of more inclusive and efficient institutions. Such institutions allowed for a society with structure and rules that better integrated markets, led to the growth of towns and cities, had better fiscal management, and created better incentives for families to invest in formal education for their children.

Institutions and Education

Spain and The Netherlands

France and England

Findings

Conclusion