Income Distribution, Development and Trade: An Empirical Review Using a New Inequality Dataset

Abstract: We reassess the empirical relevance of the Kuznets curve using a new inequality dataset. We use panel estimations to test for both the un-conditional and the conditional hypothesis that includes alternative inequality determinants. In general, we \u85nd that the Kuznets hypothesis is a clear empiri-cal regularity, stable over time and robust to the use of both the Gini coe ¢ cient and the Atkinson index. However, increasing inequality in OECD countries dur-ing the 1990s suggests a more complex inequality "tilde-pattern". Finally, we do not \u85nd any evidence that trade openness a¤ects income inequality in a way contradicting standard trade theory