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The Kuznets Curve: What Happens After the Inverted‐U?

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  • John A. List
  • Craig A. Gallet

Abstract

Recent research has posited that, in advanced economies, there is a positive correlation between in‐ come inequality and development. Using a new unbalanced panel dataset for 71 countries from 1961 to 1992, we present evidence that supports this conjecture. Although many factors may be contributing to this renewed positive relationship between growth and inequality, one plausible explanation rests on the shift away from a manufacturing base towards a service base in most advanced economies.

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  • John A. List & Craig A. Gallet, 1999. "The Kuznets Curve: What Happens After the Inverted‐U?," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 200-206, June.
    • Handle: RePEc:bla:rdevec:v:3:y:1999:i:2:p:200-206
    DOI: 10.1111/1467-9361.00061
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