This paper contributes to the debate on the effect of European contact on African
societies by comparing the long-run economic impacts of the transatlantic slave trade
and historical missionary activity. Recognizing that early missionary activity in Africa
was unintentionally aided by the preceding slave trade, it proposes an analytical framework
in which the effect of the slave trade was partially mediated by missions. Using
unique data from Nigeria, we analyze the causal effects of these shocks on schooling
attainment, and consequent effects on literacy rates and self-employment. We find a
total negative effect of the transatlantic slave trade on schooling; its negative direct
effect outweighs its positive indirect effect through missionary activity. Missionary
activity, on the other hand, has a strong positive direct effect which outweighs the
total negative effect of the slave trade. Furthermore, individuals whose ancestors were
historically exposed to greater missionary activity are more likely to be literate and
less likely to be self-employed, consistent with the positive effect of missionary activity
on schooling. In contrast, exposure to the slave trade is associated with lower literacy
rates and a greater likelihood of being self-employed. Analyzing the mechanisms, we
provide evidence suggesting that the persistent effects of these historical shocks are
due to intergenerational factors and higher schooling infrastructure in areas that were
less exposed to the slave trade or more exposed to missionary activity. Consistent with
a simple theory, these persistent effects are larger for women, younger cohorts, rural
residents, and migrants. Religion does not appear to be especially important, and the
findings rule out an explanation based on simple changes in tastes for schooling.