IDEAS home Printed from https://ideas.repec.org/a/wly/soecon/v64y1997i2p576-583.html
   My bibliography  Save this article

Level of Economic Development and Income Inequality: Evidence from the Postwar Developed World

Author

Listed:
  • Rati Ram

Abstract

Using a recent high‐quality panel dataset on income distribution for 19 developed countries, the postwar relation between the level of economic development and income inequality is estimated in terms of several Kuznets‐type specifications. Contrary to what one might expect on the basis of Kuznets's hypothesis, inequality does not decline with an increase in income even at such high levels of development, but shows an uninverted‐U pattern that is characterized by an initial decline and a subsequent increase in income inequality. The estimates suggest that the position noted for the postwar United States is shared widely in the developed world.

Suggested Citation

  • Rati Ram, 1997. "Level of Economic Development and Income Inequality: Evidence from the Postwar Developed World," Southern Economic Journal, John Wiley & Sons, vol. 64(2), pages 576-583, October.
  • Handle: RePEc:wly:soecon:v:64:y:1997:i:2:p:576-583
    DOI: 10.1002/j.2325-8012.1997.tb00075.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/j.2325-8012.1997.tb00075.x
    Download Restriction: no

    File URL: https://libkey.io/10.1002/j.2325-8012.1997.tb00075.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," The World Bank Economic Review, World Bank, vol. 10(3), pages 565-591, September.
    2. Randolph, Susan M. & Lott, William F., 1993. "Can the Kuznets effect be relied on to induce equalizing growth?," World Development, Elsevier, vol. 21(5), pages 829-840, May.
    3. Ravallion, Martin, 1995. "Growth and poverty: Evidence for developing countries in the 1980s," Economics Letters, Elsevier, vol. 48(3-4), pages 411-417, June.
    4. Adelman, Irma & Robinson, Sherman, 1989. "Income distribution and development," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 19, pages 949-1003, Elsevier.
    5. 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.
    6. Robert Summers & Alan Heston, 1991. "The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950–1988," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 327-368.
    7. Jha, Sailesh K., 1996. "The Kuznets curve: A reassessment," World Development, Elsevier, vol. 24(4), pages 773-780, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Frazer, Garth, 2006. "Inequality and development across and within countries," World Development, Elsevier, vol. 34(9), pages 1459-1481, September.
    2. Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo.
    3. Daniele Checchi, 2001. "Education, Inequality and Income Inequality," STICERD - Distributional Analysis Research Programme Papers 52, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    4. ALi Abdel Gadir Ali, "undated". "Poverty in the Arab Region: A Selective Review," API-Working Paper Series 0402, Arab Planning Institute - Kuwait, Information Center.
    5. Cook, Paul & Uchida, Yuichiro, 2008. "Structural change, competition and income distribution," The Quarterly Review of Economics and Finance, Elsevier, vol. 48(2), pages 274-286, May.
    6. Savvides, Andreas, 1998. "Trade policy and income inequality: new evidence," Economics Letters, Elsevier, vol. 61(3), pages 365-372, December.
    7. Ananya Ghosh Dastidar, 2004. "Structural Change and Income Distribution in Developing Economies: Evidence from a Group of Asian and Latin American Countries," Working papers 121, Centre for Development Economics, Delhi School of Economics.
    8. David Kiefer & Shahrukh Rafi Khan, 2003. "Revealed (or Imposed) Social Preferences for Equality and Growth," Working Paper Series, Department of Economics, University of Utah 2003_01, University of Utah, Department of Economics.
    9. Jeong, Hyeok, 2008. "Assessment Of Relationship Between Growth And Inequality: Micro Evidence From Thailand," Macroeconomic Dynamics, Cambridge University Press, vol. 12(S2), pages 155-197, September.
    10. Ali Abdel Gadir Ali, "undated". "Can the Sudan Reduce Poverty by Half by the Year 2015?," API-Working Paper Series 0304, Arab Planning Institute - Kuwait, Information Center.
    11. Dong‐Hyeon Kim & Ho‐Chuan Huang & Shu‐Chin Lin, 2011. "Kuznets Hypothesis In A Panel Of States," Contemporary Economic Policy, Western Economic Association International, vol. 29(2), pages 250-260, April.
    12. Barro, Robert J, 2000. "Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
    13. Antonelli, Cristiano & Gehringer, Agnieszka, 2017. "Technological change, rent and income inequalities: A Schumpeterian approach," Technological Forecasting and Social Change, Elsevier, vol. 115(C), pages 85-98.
    14. Juan Vicente-Perdiz & Luis M. Borge, 2000. "Desarrollo y desigualdad con progreso técnico," Investigaciones Economicas, Fundación SEPI, vol. 24(3), pages 709-726, September.
    15. Raul A. Barreto, 2001. "Endogenous Corruption, Inequality and Growth: Econometric Evidence," School of Economics and Public Policy Working Papers 2001-02, University of Adelaide, School of Economics and Public Policy.
    16. Moradi, Alexander & Baten, Joerg, 2005. "Inequality in Sub-Saharan Africa: New Data and New Insights from Anthropometric Estimates," World Development, Elsevier, vol. 33(8), pages 1233-1265, August.
    17. Ali Abdel Gadir Ali, "undated". "Conflict Resolution and Wealth Sharing in Sudan: Towards an Allocation Formula," API-Working Paper Series 0305, Arab Planning Institute - Kuwait, Information Center.
    18. 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.
    19. Motonishi, Taizo, 2006. "Why has income inequality in Thailand increased?: An analysis using surveys from 1975 to 1998," Japan and the World Economy, Elsevier, vol. 18(4), pages 464-487, December.
    20. Adams, Richard Jr., 2004. "Economic Growth, Inequality and Poverty: Estimating the Growth Elasticity of Poverty," World Development, Elsevier, vol. 32(12), pages 1989-2014, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:soecon:v:64:y:1997:i:2:p:576-583. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2325-8012 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.