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The Kuznets Curve: What Happens After the Inverted‐U?
Author(s) -
List John A.,
Gallet Craig A.
Publication year - 1999
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/1467-9361.00061
Subject(s) - economics , kuznets curve , inequality , conjecture , macroeconomics , neoclassical economics , econometrics , mathematics , mathematical analysis , pure mathematics
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.