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Structural Changes And The Distribution Of Income By Size: The Case Of India

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  • Subramanian Swamy

Abstract

The interrelation between changes in the economic structure, i.e., industrial distribution of income and labor force, and the size distribution of income is studied in this paper in a case study of India (1951–1960). The change in the size distribution of income is the sum of changes due to (1) inter‐sectoral factors and (2) intra‐sectoral factors. The need for this distinction is emphasized by the result obtained for India, that 85% of the changes in the size distribution may be assigned to inter‐sectoral factors, and only 15% to intra‐sectoral factors. Since the inter‐sectoral factors are significantly influenced by changes in the industrial distribution of income and labor force, our result points out a relation between economic growth and the size distribution which quite often is overlooked in studies of the size distribution. The results obtained in this paper support several cross‐section results of Professor Kuznets. In particular some of these are: (a) inter‐sectoral inequality in the economic structure widened with economic growth, (b) the inequality in the size distribution of India widened, (c) the level of inequality in India is higher than in any of the eight developed countries considered.

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  • Subramanian Swamy, 1967. "Structural Changes And The Distribution Of Income By Size: The Case Of India," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 13(2), pages 155-174, June.
    • Handle: RePEc:bla:revinw:v:13:y:1967:i:2:p:155-174
    DOI: 10.1111/j.1475-4991.1967.tb00738.x
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    Cited by:

    1. Vicente-Perdiz, Juan & Rubio Sanz, Maria Teresa & Decimavilla Herrero, Esther, 2010. "World’ Growth and Inequalities/Crecimiento mundial y desigualdades," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 28, pages 485(14á).-4, Agosto.
    2. Juan Vicente-Perdiz & Luis M. Borge, 2000. "Desarrollo y desigualdad con progreso técnico," Investigaciones Economicas, Fundación SEPI, vol. 24(3), pages 709-726, September.
    3. Abel, Martin E., 1971. "The Distribution Of Agricultural Development Gains In India: A Case Study For South And Southeast Asia," Staff Papers 13781, University of Minnesota, Department of Applied Economics.

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