Wage Inequality in a Dual Economy
AbstractThis paper presents necessary and sufficient conditions for unambiguous changes in wage inequality in a dual economy, based on analysis of the entire Lorenz curve. These conditions are then used to analyze the distributional consequences of various types of economic growth. In particular, it is shown that capital accumulation or technical progress in agriculture is likely to reduce wage inequality, but the effects of development in non-agriculture are typically ambiguous. The paper also discusses the implications of this analysis for the Kuznets curve.
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Bibliographic InfoPaper provided by Department of Economics, University of Bristol, UK in its series Bristol Economics Discussion Papers with number 02/531.
Length: 23 pages
Date of creation: Apr 2002
Date of revision:
dualism; inequality; growth;
Find related papers by JEL classification:
- D30 - Microeconomics - - Distribution - - - General
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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