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Economic Development and Income Distribution: A Cross‐National Analysis

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  • Kenneth J. Branco
  • John B. Williamson

Abstract

. The relationship between level of economic development and income distribution is analyzed using both a relative measure of income distribution and, for the first time, an absolute measure of income distribution which corrects for purchasing power differences between nations. Cross sectional regression analysis findings indicate support for non‐linear relationships both in the total sample of 68 nations, and also in sub‐samples of 54 developing nations and 14 industrial democracies. Our findings suggest that the poorest 40 percent of the population lose income both relatively and absolutely in the early stages of economic development. Thereafter there are gains in income although with diminishing marginal returns at the highest levels of development.

Suggested Citation

  • Kenneth J. Branco & John B. Williamson, 1988. "Economic Development and Income Distribution: A Cross‐National Analysis," American Journal of Economics and Sociology, Wiley Blackwell, vol. 47(3), pages 277-297, July.
    • Handle: RePEc:bla:ajecsc:v:47:y:1988:i:3:p:277-297
    DOI: 10.1111/j.1536-7150.1988.tb02040.x
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    References listed on IDEAS

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    1. Robert J. Lampman, 1962. "The Share of Top Wealth-Holders in National Wealth, 1922-56," NBER Books, National Bureau of Economic Research, Inc, number lamp62-1, January.
    2. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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    Cited by:

    1. Weatherspoon, Dave D. & Seale, James L., Jr. & Moss, Charles B., 2003. "Extending Theil's Inequality Index: Addressing Dynamic Convergence in the OECD," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(Supplemen), pages 1-12.

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