On the Road to Heaven: Taxation, Conversions, and the Coptic-Muslim Socioeconomic Gap in Medieval Egypt∗ Mohamed Salehy October 26, 2016 Abstract Self-selection of converts is an under-studied explanation of inter-religion socioe- conomic 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 Copts, imposed from 641 until 1856. I hypothesize that taxation caused Copts to shrink into a better-off minority and induced non-converts to invest more in human capital lead- ing the initial selection to perpetuate. Using novel data, I document that high-tax districts in 641-1100 had in 1848-1868 relatively fewer Copts but greater SES and human-capital investment differentials. Keywords: conversion; self-selection; discriminatory taxation; inter-group inequal- ity in human capital JEL Classification: N35; O15 Word count: 13,668 ∗The current version of the article replaces previous working-paper versions (Toulouse School of Economics Working Paper No. 13-428) entitled: \On the Road to Heaven: Self-Selection, Religion, and Socioeconomic Status," and dated August 28, 2013 and December 22, 2015. yThe author is an assistant professor at Toulouse School of Economics and Institute for Advanced Study in Toulouse, Manufacture des Tabacs, 21 All´eede Brienne, Building F, Office MF 524, Toulouse Cedex 6, F - 31015, FRANCE,
[email protected]. I thank my advisors, Dora Costa, Leah Bous- tan, and Jeffrey Nugent for their advice and support. I am grateful to Jean Tirole and Yassine Lefouili for very useful discussions.