Many postbellum southern farms specialized in cotton, but black-operated farms planted much larger shares of cotton than white-operated farms. This paper tests various explanations for the pattern of specialization using 1879 farm-specific data. We find that the cross-sectional racial variation...

Our model of growth departs from both the Malthusian and neoclassical approaches by including investments in human capital. We assume, crucially, that rates of return on human capital investments rise, rather than, decline, as the stock of human capital increases, until the stock becomes large....