Kuznets curve

E910276

The Kuznets curve is an economic hypothesis proposing an inverted U-shaped relationship between a country's income level and income inequality, where inequality first rises and then falls as development progresses.

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Statements (47)

Predicate Object
instanceOf economic hypothesis
empirical regularity
associatedWith modernization theory
trickle-down hypothesis NERFINISHED
assumes initial concentration of gains from growth
later spread of education and political power
shift of labor from agriculture to industry
basedOn cross-country data
historical data for developed countries
criticizedFor assuming universal pattern across countries
ignoring political and institutional factors
sample selection issues
weak empirical support in later data
describes relationship between income level and income inequality
domain cross-sectional country data
long-run time series
empiricalStatus contested
mixed evidence
field development economics
economics
income distribution
labor economics
hasVariant environmental Kuznets curve NERFINISHED
influenced development policy debates
research on inequality and growth
mathematicalForm nonlinear relationship
namedAfter Simon Kuznets NERFINISHED
notablePublication Economic Growth and Income Inequality NERFINISHED
policyImplication growth alone may eventually reduce inequality
timing of redistribution policies is important
proposes inequality first rises then falls with economic development
publicationYear 1955
relatedConcept Great U-Turn NERFINISHED
Piketty’s r > g hypothesis
relatesTo Gini coefficient NERFINISHED
economic development stages
economic growth
income inequality
industrialization
structural transformation
urbanization
shape inverted U
suggests inequality decreases at high income levels
inequality increases in early development
inequality is low at low income levels
timePeriodProposed 1950s
usedAs framework for analyzing inequality over development

Referenced by (2)

Full triples — surface form annotated when it differs from this entity's canonical label.

Simon Kuznets knownFor Kuznets curve
Simon Kuznets notableConcept Kuznets curve