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Inequality and structural transformation – Kuznets at 70

Seven decades after it was first introduced by Simon Kuznets, the Kuznets curve still has a hold on development discourse. Its simplest and starkest statement is that as economic development proceeds, inequality will first increase and then decrease (the famous ‘inverse-U’).

This hypothesis continues to be troubled by empirical assessment as new data becomes available. Over the years, the debate has moved from the observed time path of inequality to which mechanisms shape the evolution of inequality, including the structural transformation of the economy from a rural/agricultural base to an urban/industrial or post-industrial future, technological change—as it alters the relative productivity of different factors of production, international openness and globalization, and the political economy of redistributive forces as society evolves.

With this rich history and background, the time is right to re-examine the Kuznets curve literature broadly construed, to take stock of what has been learned, and to identify new and emerging questions on how policy tools can address inequality.

Key questions
  • What do we know about the national Kuznets curve in light of new data?
  • What do we know about the global evolution of inequality in a Kuznetsian perspective?
  • What is the relationship between structural transformation, globalization, and the Kuznets curve?
  • How do political economy factors explain the Kuznetsian evolution of inequality?
  • What evidence supports the Kuznets metaphor beyond national inequality, in areas such as the environment?
Watch this space

All the activities, publications, events, opportunities to engage, and other outputs of this project will be here!