Fishermen in Sri Lanka
Simon Kuznets won the Nobel prize for economic sciences in 1971 for his work on the empirical analysis of economic growth. One of his findings was that economic growth appears to have an effect on income distribution. He found that in poor countries,economic growth increased the disparity of income between rich and poor people, whereas the reverse happened in wealthier countries.
Kuznets’ work led some commentators to suggest that we should observe an inverted U-shape relationship between income per head and income inequality. This became known as the ‘Kuznets curve’ (see Figure 1).
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