This workshop will reexamine the link between structural transformation and inequality by looking at the connection to income growth. Structural transformation away from agriculture not only provides enormous potential for productivity growth, it also exposes populations with varying levels of adjustment capacity to new challenges. Less is known on how structural transformation affects income growth at different stages of income distribution.
There has been renewed interest in finding the real cause of income and wealth inequality. Alongside this, structural transformation away from agriculture continues in many countries and creates enormous potential for growth, particularly in Asia and Africa.
Simon Kuznets’ influential study predicted an inverted-U relationship between inequality and development through changes in the structure of production. He identified two features: (i) a decline in the share of agriculture in total output, and (ii) migration from the low-income agricultural sector to the high-income industrial sector.
Structural transformation is also said to expose populations with varying levels of adjustment capacity to new challenges. For example, heterogeneous individual mobility patterns emerge across income distribution. As many countries experienced a reversal of the Kuznets curve in the second half of the 20th century, it is possible that it fails to account for the social impact of growth. Many empirical tests to verify Kuznets’ hypothesis have not yielded a consensus.
Based on the literature on dual-economy models, the shift of population between sectors and intersectoral differences in average income do explain the shape of the Kuznets curve. Relatively less-researched are individual migration decisions and their effects on the Kuznets motion of population shift. Do population movements at different stages of distribution and at different points in time contribute to Kuznets motion?
This workshop will reexamine the link between structural transformation and inequality. Building on a dual-economy framework, it will link structural transformation to income growth across distribution networks. It will also focus on how structural transformation affects income growth at different stages of income distribution.
Experts, academics, and policy makers.
- A conference and workshop for experts, academics, and policy makers
- Completed background papers or book chapters
- ADBI working papers
- An edited volume or articles in refereed journals
How to register
By invitation only.
Time of event
Day 1: 09:30 – 18:00
Day 2: 09:00 – 13:00