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Kuznets in the twenty-first century: Mexico and United States compared

Author

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  • Paul, Saumik
  • Sen, Kunal

Abstract

Building upon a multisectoral framework in light of the Kuznetsian paradigm, this paper analyses the relationship between structural transformation and income inequality. Empirical evidence is drawn using a large census dataset consisting of more than 22 million individuals from Mexico and the United States in 2000 and 2020. The Gini coefficient of income in Mexico decreased from 0.49 in 2000 to 0.43 in 2020, whereas it slightly increased in the US from 0.49 in 2000 to 0.51 in 2020. Movement of workers from other sectors to manufacturing and industry in the bottom income quantiles, and to services in the middle income quantiles lowers the income disparity in Mexico. On the other hand, movement of workers from other sectors to manufacturing and industry in the top income quantiles, and to business and finance services in the upper middle income quantiles appears to increase the income disparity in the US.

Suggested Citation

  • Paul, Saumik & Sen, Kunal, 2026. "Kuznets in the twenty-first century: Mexico and United States compared," Structural Change and Economic Dynamics, Elsevier, vol. 78(C), pages 209-221.
    • Handle: RePEc:eee:streco:v:78:y:2026:i:c:p:209-221
    DOI: 10.1016/j.strueco.2026.02.007
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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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