Income Distribution and Structural Transformation: Empirical Evidence from Developed and Developing Countries

Abstract

The process of structural transformation forms the very basis of

economic growth and development. This paper analyses the implications

of alternate patterns of structural change for changes in the

overall distribution of income within an economy. An empirical analysis

is carried out based on evidence from seventy-eight developing

and transition economies and developed countries. The estimated

results from a fixed effects panel data model, indicate the existence

of substantial differences as well as important similarities between

developed and developing country experience with respect to structural

change and associated changes in income inequality.