“An invariable accompaniment of growth in developed countries is the shift away from agriculture, a process usually referred to as industrialization and urbanization. The income distribution of the total population, in the simplest model, may therefore be viewed as a combination of the income distributions of the rural and of the urban populations. What little we know of the structures of these two component income distributions reveals that: (a) the average per capita income of the rural population is usually lower than that of the urban;' (b) inequality in the percentage shares within the distribution for the rural population is somewhat narrower than in that for the urban population… Operating with this simple model, what conclusions do we reach? First, all other conditions being equal, the increasing weight of urban population means an increasing share for the more unequal of the two component distributions. Second, the relative difference in per capita income between the rural and urban populations does not necessarily drift downward in the process of economic growth: indeed, there is some evidence to suggest that it is stable at best, and tends to widen because per capita productivity in urban pursuits increases more rapidly than in agriculture. If this is so, inequality in the total income distribution should increase”

Source: "Economic growth and income inequality," 1955, p. 7 as cited in: Anthony Barnes Atkinson, François Bourguignon, Handbook of Income Distribution, Vol. 1. Elsevier, 2000 p. 799

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "An invariable accompaniment of growth in developed countries is the shift away from agriculture, a process usually refe…" by Simon Kuznets?
Simon Kuznets photo
Simon Kuznets 11
economist 1901–1985

Related quotes

Simon Kuznets photo
Simon Kuznets photo
Thomas Sowell photo
Joan Robinson photo

“If there is any law governing the distribution of income between classes, it still remains to be discovered.”

Source: An Essay on Marxian Economics (Second Edition) (1966), Chapter IV, The Long-Period Theory Of Employment, p. 34

Jan Tinbergen photo
Anthony Giddens photo
Johan Norberg photo
Simon Kuznets photo
David Harvey photo

“The net worth of the 358 richest people in the world was then found to be 'equal to the combined income of the poorest 45 per cent of the worlds population - 2.3 billion people.”

David Harvey (1935) British anthropologist

Introduction to the 2006 Verso Edition, p. xi
The Limits To Capital (2006 VERSO Edition)

Related topics