kuznet

Simon Kuznets was a Russian-born American economist known for his work on economic growth and the measurement of national income. He helped develop national income accounting and empirical methods for studying how economies grow. He received the Nobel Prize in Economic Sciences in 1971 for his empirically oriented research on economic growth and the distribution of income.

One of Kuznets’ best-known ideas is the Kuznets curve, an inverted-U relationship between a country’s level of development and income inequality. According to this view, inequality tends to rise during early industrialization as returns to capital outpace wages and as markets restructure. After a turning point, further development, diffusion of technology and skills, urbanization, and policy reforms can lead to falling inequality. The concept emphasizes structural change and institutions as drivers of distributional outcomes. It is intended as an empirical regularity rather than a universal law.

Empirical evidence is mixed. Some historical data support an inverted-U pattern in certain countries and periods, but many studies show variations by region, time, and method. Globalization, technology, and policy choices can push inequality up or down, and measurement issues—such as what is included in income or consumption and how mobility is captured—complicate tests of the curve.

In development discourse, the Kuznets curve is used to frame debates about growth, inequality, and distributional policy, but it is often considered alongside alternative patterns and models that account for persistent or rising inequality in the modern era.