Legacies of loss: The health outcomes of slaveholder compensation in the British Cape Colony

Can wealth shocks have intergenerational health consequences? We use the partial compensation slaveholders received after the 1834 slave emancipation in the British Cape Colony to measure the intergenerational effects of a wealth loss on longevity. We find that a greater loss of slave wealth shortened the lifespans of the generation of slaveholders that experienced the shock albeit these effects are usually small and mostly confined to older cohorts of slaveholders who likely exploited slaves both as labor and capital inputs. The lifespans of those of the second generation who survived infancy were unaffected by the shortfalls and no effects of the shortfall were found for the third generation.