Colonial Education and Industrialization: Evidence from
Korean Peninsula in 1930
This study investigates the impact of colonial education on industrialization in Korea during Japanese rule. Specifically, I examine the influence of Japanese and Korean literacy rates and explore the mechanisms driving colonial Korea's industrialization. The findings reveal a strong association between the Japanese literacy rate and industrialization levels in 1930, while the Korean literacy rate shows no significant correlation. To address potential endogeneity, I utilize the presence of civil exam passers from the Joseon Dynasty as the instrument variable of the Japanese literacy rate, which reinforces my findings. The further analysis highlights the intentional design by the colonial government to ensure Japanese-written textbooks contained more innovative knowledge compared to their Korean counterparts. The Japanese language becomes the vehicle facilitating the spread of new knowledge, particularly in science and technology. Overall, this study sheds light on the role of colonial education in the industrialization of latecomer countries.