Kuznets,Simon.1955. "Economic Growth and Income Inequality." American
EconomicReview, 45(1): 1-28.
Data fromdevelopingeconomiesindicatethattheearlierphasesofeconomic
development tendtobe characterized byincreasingincomeinequality, as those
engagedinthesmallbutgrowingmodernsectoroftheeconomypullawayfrom
thosestillleftinagriculture andothersubsistence activities. *Thedegreeofinequalityreachesa peak,however, andthendiminishes withfurther development, as the
modernsectorcomestodominatethe
economyandperhapsmoreso ifitcreates
roomforredistributive activity. Theresulting "Kuznetscurve"hasbeenthesubject
ofmuchempirical researchanddiscussionwithindevelopment economics.