The Sonoran Land Grab: Development of Wealth in 19th century Sonora

Abstract

In this article, we investigate the effect of encroachment policies on wealth in late 19th century conducted by the Mexican state in the state of Sonora. Using a novel database of will inventories from the Mexican state of Sonora, we find that the upper-class saw large wealth gains as a result of access to new agricultural land and irrigation. We argue that encroachment policies had a substantial effect on wealth but that this effect is heterogenous across social groups. We highlight the role of institutions in shaping wealth and inequality in the early periods of American economic development.