The Influence of the Urban Informal Sector on Economic Inequality

Victor E. Tokman

Chapter 5 in Work, Income and Inequality, 1983, pp 108-137 from Palgrave Macmillan

Abstract: 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 (search for similar items in EconPapers)
Date: 1983
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DOI: 10.1007/978-1-349-05417-6_5

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