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A proper farewell to Kuznets' hypothesi

  • Luis Angeles

The aim of this paper is to o¤er a more appropriate test of Kuznets’ “inverted-U”hypothesis than the one routinely used in the literature and implement it using panel and country-by-country regressions. We explore whether countries experiencing large shifts in population from the agri- cultural/rural sector to the urban one are characterized by an evolution of income inequality along the lines discussed by Simon Kuznets in its classical article. Our results show that there is no systematic relationship between income inequality and agricultural employment or rural population.

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File URL: http://www.gla.ac.uk/media/media_33615_en.pdf
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Paper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2007_15.

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Date of creation: Jul 2007
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Handle: RePEc:gla:glaewp:2007_15
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  1. Kanbur, Ravi, 2000. "Income distribution and development," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 13, pages 791-841 Elsevier.
  2. Banerjee, Abhijit & Newman, Andrew F, 1998. "Information, the Dual Economy, and Development," Review of Economic Studies, Wiley Blackwell, vol. 65(4), pages 631-53, October.
  3. Glomm, Gerhard & Ravikumar, B., 1998. "Increasing returns, human capital, and the Kuznets curve," Journal of Development Economics, Elsevier, vol. 55(2), pages 353-367, April.
  4. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, vol. 40(1), pages 25-52, February.
  5. Matthew Higgins & Jeffrey G. Williamson, 1999. "Explaining inequality the world round: cohort size, Kuznets curves, and openness," Staff Reports 79, Federal Reserve Bank of New York.
  6. Anand, Sudhir & Kanbur, S. M. R., 1993. "Inequality and development A critique," Journal of Development Economics, Elsevier, vol. 41(1), pages 19-43, June.
  7. Matyas, L. & Konya, L. & Macquarie, L., 1997. "The Kuznets U-Curve Hypothesis: Some Panel Data Evidence," Monash Econometrics and Business Statistics Working Papers 7/97, Monash University, Department of Econometrics and Business Statistics.
  8. Jeremy Greenwood & Boyan Jovanovic, 1989. "Financial Development, Growth, and the Distribution of Income," NBER Working Papers 3189, National Bureau of Economic Research, Inc.
  9. Andrea Brandolini & Anthony B. Atkinson, 2001. "Promise and Pitfalls in the Use of "Secondary" Data-Sets: Income Inequality in OECD Countries As a Case Study," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 771-799, September.
  10. Peter H. Lindert, . "Three Centuries Of Inequality In Britain And America," Department of Economics 97-09, California Davis - Department of Economics.
  11. Frazer, Garth, 2006. "Inequality and development across and within countries," World Development, Elsevier, vol. 34(9), pages 1459-1481, September.
  12. Morrisson, Christian, 2000. "Historical perspectives on income distribution: The case of Europe," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 4, pages 217-260 Elsevier.
  13. P. J. Dawson, 1997. "On testing Kuznets' economic growth hypothesis," Applied Economics Letters, Taylor & Francis Journals, vol. 4(7), pages 409-410.
  14. Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January.
  15. Ahluwalia, Montek S., 1976. "Inequality, poverty and development," Journal of Development Economics, Elsevier, vol. 3(4), pages 307-342, December.
  16. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
  17. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
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