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Inequality and growth: inverted and uninverted U-shapes

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  • Juan Vicente
  • Luis Borge

Abstract

Inequality follows different patterns along a high-income sector enlargement growth. Even under Kuznets' basic assumptions inequality may show a convex shape at the end of the process. Moreover, when some of the basic assumptions are removed, the inequality path may be convex along the whole process or display a reversal from inverted to uninverted U-shapes along the same process. That is why empirical studies should specify which process and which phase within it they are dealing with on testing Kuznets' hypothesis.

Suggested Citation

  • Juan Vicente & Luis Borge, 2000. "Inequality and growth: inverted and uninverted U-shapes," Applied Economics Letters, Taylor & Francis Journals, vol. 7(8), pages 497-500.
  • Handle: RePEc:taf:apeclt:v:7:y:2000:i:8:p:497-500
    DOI: 10.1080/13504850050033247
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    References listed on IDEAS

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    1. Bruno, Michael & Ravallion, Martin & Squire, Lyn, 1996. "Equity and growth in developing countries : old and new perspectives on the policy issues," Policy Research Working Paper Series 1563, The World Bank.
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    Cited by:

    1. Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo Group Munich.

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