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Economic Development and Income Inequality. A Re-examination of Kuznets's Law

Author

Listed:
  • Decker, C.

Abstract

In Kuznets's (1955) classic paper on the relationship between economic growth and income inequality, the process of population shift from traditional to modern activities forms the basis of the theory of distributional change during the process of development. This relationship, known at Kuznets's law, which postulates that income inequality first increases and then decreases during the development process, is re-examined in this paper using data for fifteen developing countries.

Suggested Citation

  • Decker, C., 1996. "Economic Development and Income Inequality. A Re-examination of Kuznets's Law," Department of Economics - Working Papers Series 532, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:532
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    Keywords

    ECONOMIC GROWTH; INCOME;

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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