An alternative test of Kuznets’ hypothesis
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This paper uses a novel approach for testing Kuznets’ hypothesis. Following Kuznets’ original insights, we test for an inverted U relationship between employment outside agriculture and income inequality, instead of the traditional focus on GDP per capita and income inequality. Our results, obtained using panel and country by country regressions, do not support Kuznets’ hypothesis.
KeywordsKuznets’ hypothesis Kuznets’ curve Economic development and inequality Rural–urban migration Employment in agriculture
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