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The Kuznets Curve and the Impact of Various Income Sources on the Link Between Inequality and Development

Author

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  • Joseph Deutsch

    (Department of Economics, Bar Ilan University)

  • Jacques Silber

    (Department of Economics, Bar Ilan University)

Abstract

To understand the process described by the Kuznets curve a decomposition of the Gini Index by income sources is used that emphasizes the role of three components measuring the impact of the shares of the sources, the degree to which they are unequally distributed and their correlation with total income. The rising section of the Kuznets curve is mainly the consequence of the increasing share of wages while the declining section is related to the declining share of entrepreneurial income and the negative correlation between transfers and total income. The data sources were provided by the International Labour Office.

Suggested Citation

  • Joseph Deutsch & Jacques Silber, 2001. "The Kuznets Curve and the Impact of Various Income Sources on the Link Between Inequality and Development," Working Papers 2001-03, Bar-Ilan University, Department of Economics.
    • Handle: RePEc:biu:wpaper:2001-03
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    References listed on IDEAS

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    Cited by:

    1. Sima Siami-Namini, 2019. "Agriculture and Non-Agriculture Growth, Inflation and Income Inequality in Developed and Developing Countries," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(11), pages 43-51, November.
    2. Joseph Deutsch & Jacques Silber, 2004. "Measuring the Impact of Various Income Sources on the Link between Inequality and Development: Implications for the Kuznets Curve," Review of Development Economics, Wiley Blackwell, vol. 8(1), pages 110-127, February.
    3. Furquim, Lilian de Toni & Garcia, Fernando, 2001. "Inequality and economic growth in Latin," Textos para discussão 104, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    4. Sima Siami-Namini, 2019. "Agriculture and Non-Agriculture Growth, Inflation and Income Inequality in Developed and Developing Countries," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(11), pages 1-43, November.

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    More about this item

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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