Intersectoral size differences and migration: Kuznets revisited
That researchers look for the inverted-U shape in inequality in the arbitrary periods of arbitrary countries underlies the divergent empirical evidence across studies. To point to the right context for the pattern, this paper establishes a formal mechanism in line with Kuznets' explanation that relates to the industrialization-cum-urbanization phases of closed trade regimes. The mechanism involves an interaction among urban-rural sectoral size differences, agricultural tastes/income, and migration, and predicts an inverted-U shape in inequality in the following way: (i) widening differences in the sizes of urban and rural sectors due to exogenous shocks affect negatively the agricultural tastes/income, worsening inequality; (ii) increasing sectoral size differences and decreasing agricultural tastes/income jointly foster intersectoral migration; (iii) migration acts, in turn, as an equilibrating effect, improving the income distribution. Empirically testing these predictions, non-Sub-Saharan developing countries' data support the mechanism, while data from developed and Sub-Saharan African countries provide little support, as per our prior expectations. This highlights a contrasting evidence on the inverted-U shape across country groups of differing development stages.
Volume (Year): 20 (2011)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RJTE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RJTE20|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lillard, L.A. & Weiss, Y., 1996.
"Uncertain Health and Survival: Efefcts on End-of-Life Consumption,"
7-96, Tel Aviv.
- Lillard, Lee A & Weiss, Yoram, 1997. "Uncertain Health and Survival: Effects on End-of-Life Consumption," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(2), pages 254-68, April.
- B. Douglas Bernheim & Jonathan Skinner & Steven Weinberg, 1997.
"What Accounts for the Variation in Retirement Wealth Among U.S. Households?,"
97035, Stanford University, Department of Economics.
- B. Douglas Bernheim & Jonathan Skinner & Steven Weinberg, 2001. "What Accounts for the Variation in Retirement Wealth among U.S. Households?," American Economic Review, American Economic Association, vol. 91(4), pages 832-857, September.
- B. Douglas Bernheim & Jonathan Skinner & Steven Weinberg, 1997. "What Accounts for the Variation in Retirement Wealth Among U.S. Households?," NBER Working Papers 6227, National Bureau of Economic Research, Inc.
- Anderson, K.S. & Baland, J-M., 2000.
"The Economics of Roscas and Intra-Household Resource Allocation,"
2000-83, Tilburg University, Center for Economic Research.
- Siwan Anderson & Jean-Marie Baland, 2002. "The Economics of Roscas and Intrahousehold Resource Allocation," The Quarterly Journal of Economics, Oxford University Press, vol. 117(3), pages 963-995.
- Esther Duflo & Christopher Udry, 2003.
"Intrahousehold Resource Allocation in Côte D'ivoire: Social Norms, Separate Accounts and Consumption Choices,"
857, Economic Growth Center, Yale University.
- Esther Duflo & Christopher Udry, 2004. "Intrahousehold Resource Allocation in Cote d'Ivoire: Social Norms, Separate Accounts and Consumption Choices," NBER Working Papers 10498, National Bureau of Economic Research, Inc.
- Christopher R. Udry & Esther Duflo, 2004. "Intrahousehold Resource Allocation in Cote D'Ivoire: Social Norms, Separate Accounts and Consumption Choices," Yale School of Management Working Papers ysm407, Yale School of Management.
- Greg Duncan & Saul Hoffman, 1985. "A reconsideration of the economic consequences of marital dissolution," Demography, Springer, vol. 22(4), pages 485-497, November.
- Gábor Kézdi & Robert J. Willis, 2003. "Who Becomes a Stockholder? Expectations, SUbjective Uncertainty, and Asset Allocation," Working Papers wp039, University of Michigan, Michigan Retirement Research Center.
- James M. Poterba & Andrew Samwick, 2001.
"Household Portfolio Allocation over the Life Cycle,"
in: Aging Issues in the United States and Japan, pages 65-104
National Bureau of Economic Research, Inc.
- James M. Poterba & Andrew A. Samwick, 1997. "Household Portfolio Allocation Over the Life Cycle," NBER Working Papers 6185, National Bureau of Economic Research, Inc.
- James M. Poterba & Andrew Samwick, 1999.
"Taxation and Household Portfolio Composition: U.S. Evidence from the 1980s and 1990s,"
NBER Working Papers
7392, National Bureau of Economic Research, Inc.
- Poterba, James M. & Samwick, Andrew A., 2003. "Taxation and household portfolio composition: US evidence from the 1980s and 1990s," Journal of Public Economics, Elsevier, vol. 87(1), pages 5-38, January.
- Marianne E. Page & Ann Huff Stevens, 2004. "The Economic Consequences of Absent Parents," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
- Matthew McKeever & Nicholas H. Wolfinger, 2001. "Reexamining the Economic Costs of Marital Disruption for Women," Social Science Quarterly, Southwestern Social Science Association, vol. 82(1), pages 202-217.
- Richard Burkhauser & Greg Duncan & Richard Hauser & Roland Berntsen, 1991. "Wife or frau, women do worse: A comparison of men and women in the United States and Germany after marital dissolution," Demography, Springer, vol. 28(3), pages 353-360, August.
- Greg J. Duncan & Saul D. Hoffman, 1985. "Economic Consequences of Marital Instability," NBER Chapters, in: Horizontal Equity, Uncertainty, and Economic Well-Being, pages 427-470 National Bureau of Economic Research, Inc.
- Slesnick, Daniel T., 2002. "Prices and Regional Variation in Welfare," Journal of Urban Economics, Elsevier, vol. 51(3), pages 446-468, May.
- Burkhauser, Richard V, et al, 1990. "Economic Burdens of Marital Disruptions: A Comparison of the United States and the Federal Republic of Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(4), pages 319-33, December.
When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:20:y:2011:i:2:p:251-292. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.