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The Influence of the Urban Informal Sector on Economic Inequality

In: Work, Income and Inequality

Author

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  • Victor E. Tokman

Abstract

Following Kuznets (1955), it is widely hypothesised that the shift of the labour force from agricultural to non-agricultural sectors would affect the secular income structure, widening inequality in the early phases of transition from pre-industrial to industrial economies, becoming stabilised for a while and narrowing inequality in the later phases. This behaviour is expected as the result both of a greater degree of inequality and of higher incomes per capita prevailing in the non-agricultural sectors. According to Kuznets’ estimates, inequality should increase until the weight of non-agricultural sectors reaches 60–70 per cent of the total labour force.

Suggested Citation

  • Victor E. Tokman, 1983. "The Influence of the Urban Informal Sector on Economic Inequality," Palgrave Macmillan Books, in: Frances Stewart (ed.), Work, Income and Inequality, chapter 5, pages 108-137, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-05417-6_5
    DOI: 10.1007/978-1-349-05417-6_5
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    Cited by:

    1. Addison T. & Demery L., 1986. "Impact of liberalisation on growth and equity," ILO Working Papers 992500143402676, International Labour Organization.
    2. repec:ilo:ilowps:250014 is not listed on IDEAS
    3. Fiszbein, Ariel, 1992. "Do workers in the informal sector benefit from cuts in the minimum wage?," Policy Research Working Paper Series 826, The World Bank.

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