Reversal of the Kuznets curve: Study on the inequality–development relation using top income shares data
Tuominen, Elina (2016)
Tuominen, Elina
Tampereen yliopisto
2016
Johtamiskorkeakoulu - School of Management
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Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-03-0252-8
https://urn.fi/URN:ISBN:978-952-03-0252-8
Tiivistelmä
In this study, recently published top 1% income share series are exploited in
studying the inequality–development association in 26 countries from 1900 to 2010.
The top income shares data are of high quality and provide interesting possibilities
for studying slow development processes. Because many empirical inequality–
development studies have challenged the use of quadratic specifications, this study
addresses the issue of functional form by applying penalized spline methods.
The relationship between the top 1% income share and development is found to
experience a reversal at the highest levels of development and, thus, a positive
association is now observed in many “advanced” economies. In an additional
analysis covering a shorter time period, the discovered positive relationship holds
at the highest levels of development when controls for two sectoral measures are
included.
studying the inequality–development association in 26 countries from 1900 to 2010.
The top income shares data are of high quality and provide interesting possibilities
for studying slow development processes. Because many empirical inequality–
development studies have challenged the use of quadratic specifications, this study
addresses the issue of functional form by applying penalized spline methods.
The relationship between the top 1% income share and development is found to
experience a reversal at the highest levels of development and, thus, a positive
association is now observed in many “advanced” economies. In an additional
analysis covering a shorter time period, the discovered positive relationship holds
at the highest levels of development when controls for two sectoral measures are
included.