Premium
Measuring the Impact of Various Income Sources on the Link between Inequality and Development: Implications for the Kuznets Curve
Author(s) -
Deutsch Joseph,
Silber Jacques
Publication year - 2004
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/j.1467-9361.2004.00223.x
Subject(s) - economics , kuznets curve , index (typography) , economic inequality , inequality , income distribution , econometrics , income inequality metrics , demographic economics , income shares , labour economics , macroeconomics , mathematics , mathematical analysis , world wide web , computer science
To understand the link between inequality and development, 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. Such a breakdown explains why the rising section of the Kuznets curve is mainly the consequence of the increasing share of wages while its declining section reflects the decreasing share of entrepreneurial income and the negative correlation between transfers and total income. The data sources were provided by the International Labour Office.