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Measuring the Impact of Various Income Sources on the Link between Inequality and Development: Implications for the Kuznets Curve

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  • Joseph Deutsch
  • Jacques Silber

Abstract

To understand the link between inequality and development, a decomposition of the Gini index by income sources is used that emphasizes the role of three components measuring the impact of the shares of the sources, the degree to which they are unequally distributed, and their correlation with total income. Such a breakdown explains why the rising section of the Kuznets curve is mainly the consequence of the increasing share of wages while its declining section reflects the decreasing share of entrepreneurial income and the negative correlation between transfers and total income. The data sources were provided by the International Labour Office. Copyright Blackwell Publishing Ltd 2004.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 8 (2004)
Issue (Month): 1 (02)
Pages: 110-127

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Handle: RePEc:bla:rdevec:v:8:y:2004:i:1:p:110-127

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Cited by:
  1. Monica Szeles, 2013. "Re-examining the relationship between economic growth and inequality in the New Member States," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(5), pages 2799-2813, August.
  2. Kimhi, Ayal, 2009. "Entrepreneurship and Income Inequality in Southern Ethiopia," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo Group Munich.
  4. Gilad D. Aharonovitz, 2011. "Why Cannot Poor Countries Utilize Existing Knowledge? Expansion Of Firms And Human Capital Accumulation By Training," Economic Inquiry, Western Economic Association International, vol. 49(1), pages 108-121, 01.

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