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Level of Development and Income Inequality: An Extension of Kuznets-Hypothesis to the World Economy

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  • Ram, Rati
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    Abstract

    Kuznets' hypothesis, which relates income inequality in a country with its level of economic development, is extended to the world system, and it is hypothesized that intercountry (world) income inequality first increases with world economic growth, but starts declining after reaching a turning point. Empirical status of the extension is explored on the basis of reasonably good income data that are comparable across countries and over time. A well-recommended inequality index is utilized for the study, which includes 115 market economies and covers the period 1960-80. The estimates appear to support the proposed extension fairly well. Copyright 1989 by WWZ and Helbing & Lichtenhahn Verlag AG

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Kyklos.

    Volume (Year): 42 (1989)
    Issue (Month): 1 ()
    Pages: 73-88

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    Handle: RePEc:bla:kyklos:v:42:y:1989:i:1:p:73-88

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962

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    Cited by:
    1. Alvargonzalez, M. & Lopez, A. & Perez, R., 2004. "Growth-Inequality Relationship. An Analytical Approach and Some Evidence for Latin America," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(2).
    2. Liyanage Devangi H. Perera & Grace H.Y. Lee, 2013. "Have Economic Growth And Institutional Quality Contributed To Poverty And Inequality Reduction In Asia?," Monash Economics Working Papers 37-13, Monash University, Department of Economics.
    3. Tobias F. Rötheli, 2011. "The Kuznets curve: determinants of its shape and the role of finance," Studies in Economics and Finance, Emerald Group Publishing, vol. 28(2), pages 149-159, June.

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