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The Influence of the Urban Informal Sector on Economic Inequality

  • Victor E. Tokman

Abstract

Following Kuznets (1955), it is widely hypothesised that the shift of the labour force from agricultural to non-agricultural sectors would affect the secular income structure, widening inequality in the early phases of transition from pre-industrial to industrial economies, becoming stabilised for a while and narrowing inequality in the later phases. This behaviour is expected as the result both of a greater degree of inequality and of higher incomes per capita prevailing in the non-agricultural sectors. According to Kuznets’ estimates, inequality should increase until the weight of non-agricultural sectors reaches 60–70 per cent of the total labour force.

Keywords

Family Firm Latin American Country Informal Sector Formal Sector Economic Inequality 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Frances Stewart 1983

Authors and Affiliations

  • Victor E. Tokman

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