Conceptual | Comment

What is Kuznets curve in Economics?

A curve used to demonstrate the hypothesis that economic growth initially leads to greater inequality, followed later by the reduction of inequality. The idea was first proposed by American economist Simon Kuznets. As economic growth comes from the creation of better products, it usually boosts the income of workers and investors who participate in the first wave of innovation. The industrialisation of an agrarian economy is a common example. This inequality, however, tends to be temporary as workers and investors who were initially left behind soon catch up by helping offer either the same or better products. This improves their incomes.


Our code of editorial values

Related Topics
This article is closed for comments.
Please Email the Editor

Printable version | Feb 19, 2022 11:48:09 pm | https://www.thehindu.com/opinion/op-ed/what-is-kuznets-curve-economics/article19127870.ece