kuznets hypothesis

1. Kuznets Income Distribution Curve
Dr. Pragati Krishnan
Assistant Professor (Guest)
School of Studies in Economics
Pt. Ravishankar Shukla University
Raipur, Chhattisgarh
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2. A Kuznets curve is a graphical representation of market forces and income
as and when an economy develops. The Kuznets curve was first developed
by economists Simon Kuznets in the 1950s and 1960s.
Kuznets Income Distribution Curve
dqtusV oØ fdlh vFkZO;oLFkk ds fodflr gksus ij cktkj dh rkdrksa vkSj vk;
dk ,d fp=e; çfrfuf/kRo gSA dqtusV oØ igyh ckj 1950 vkSj 1960 ds n'kd
esa vFkZ'kkL=h lkbeu dqtusV }kjk fodflr fd;k x;k FkkA
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3. According to the Kuznets curve, income inequality tends to increase in the early stages of
economic development, as a country moves from an agricultural-based economy to an
industrial-based one. However, as economic development continues and a country
becomes more prosperous, income inequality begins to decrease.
Example : The Kuznets curve shows that when a nation undergoes industrialization, the
center of the nation’s economy will shift towards urban centers. As internal migration by
farmers looking for better-paying jobs in urban hubs causes a significant rural-urban
inequality gap, the rural population will decrease and the urban population will increase.
dqtusV oØ ds vuqlkj] vkfFkZd fodkl ds 'kq#vkrh pj.kksa esa vk; vlekurk c<+us yxrh gS] D;ksafd
,d ns'k —f"k&vk/kkfjr vFkZO;oLFkk ls vkS|ksfxd&vk/kkfjr vFkZO;oLFkk dh vksj c<+rk gSA gkyk¡fd]
tSls&tSls vkfFkZd fodkl tkjh jgrk gS vkSj ns'k vf/kd le`) gksrk gS] vk; vlekurk de gksus
yxrh gSA
mnkgj.k dqtusV oØ n'kkZrk gS fd tc fdlh jk"Vª esa vkS|ksxhdj.k gksxk] rks jk"Vª dh vFkZO;oLFkk dk
dsaæ 'kgjh dsaæksa dh vksj LFkkukarfjr gks tk,xkA pwafd 'kgjh dsaæksa esa csgrj Hkqxrku okyh ukSdfj;ksa dh
ryk'k esa fdlkuksa }kjk vkarfjd çoklu ,d egRoiw.kZ xzkeh.k&'kgjh vlekurk varj dk dkj.k curk
gS] xzkeh.k vkcknh ?kV tk,xh vkSj 'kgjh vkcknh c<+ tk,xhA
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4. When a certain level of average income is set and the process of industrialization is in full
swing, inequality is expected to decrease. Kuznets believed that inequality would follow an
inverted “U” shape as it rises and falls with an increase in income per capita.
tc vkSlr vk; dk ,d fuf'pr Lrj fu/kkZfjr fd;k tkrk gS vkSj vkS|ksxhdj.k dh çfØ;k iwjs tksjksa
ij gksrh gS] rks vlekurk de gksus dh mEehn gksrh gSA dqtusV~l dk ekuuk Fkk fd vlekurk ,d
mYVs ;w vkdkj dk vuqlj.k djsxh D;ksafd ;g çfr O;fä vk; esa o`f) ds lkFk c<+rh vkSj ?kVrh gSA
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5. The Kuznets curve hypothesis is the idea that economic development is associated with a specific
pattern of income inequality over time, as described by the Kuznets curve.
The hypothesis suggests that income inequality initially increases as a country undergoes
economic development, but then reaches a peak and begins to decline as the country becomes
more prosperous.
Kuznets Curve Hypothesis
dqtusV oØ ifjdYiuk
dqtusV oØ ifjdYiuk ;g fopkj gS fd vkfFkZd fodkl le; ds lkFk vk; vlekurk
ds ,d fof'k"V iSVuZ ls tqM+k gS] tSlk fd dqtusV oØ }kjk of.kZr gSA
ifjdYiuk ls irk pyrk gS fd tSls&tSls ns'k vkfFkZd fodkl ls xqtjrk gS] vk;
vlekurk 'kq: esa c<+rh gS] ysfdu fQj pje ij igqap tkrh gS vkSj tSls&tSls ns'k
vf/kd le`) gksrk tkrk gS] fxjkoV 'kq: gks tkrh gSA
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6. Kuznets observed that in the early stages of industrialization, income
inequality tended to increase as workers moved from low-paying
agricultural jobs to higher-paying industrial jobs. However, as a country
became more prosperous and developed, income inequality tended to
decline as workers gained access to better education, training, and job
opportunities.
dqtusV us ns[kk fd vkS|ksxhdj.k ds 'kq#vkrh pj.kksa esa] vk; vlekurk c<+us yxh
D;ksafd Jfed de osru okyh —f"k ukSdfj;ksa ls mPp osru okyh vkS|ksfxd ukSdfj;ksa dh
vksj pys x,A gkyk¡fd] tSls&tSls ns'k vf/kd le`) vkSj fodflr gksrk x;k] vk;
vlekurk esa fxjkoV vkbZ D;ksafd Jfedksa dks csgrj f'k{kk] çf'k{k.k vkSj ukSdjh ds
volj çkIr gq,A
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7. Kuznets Curve in Economics Applications
vFkZ'kkL= vuqç;ksxksa esa dqtusV oØ
• Understanding Relationship between Economic Development and Income Inequality : The Kuznets curve
provides a framework for understanding how income inequality changes over time as a country develops.
This can help policymakers to design interventions to reduce income inequality in the early stages of
development and promote economic growth in the later stages.
vkfFkZd fodkl vkSj vk; vlekurk ds chp laca/k dks le>uk dqtusV oØ ;g le>us ds fy, ,d :ijs[kk çnku
djrk gS fd fdlh ns'k ds fodkl ds lkFk le; ds lkFk vk; vlekurk dSls cnyrh gSA blls uhfr fuekZrkvksa dks
fodkl ds 'kq#vkrh pj.kksa esa vk; vlekurk dks de djus vkSj ckn ds pj.kksa esa vkfFkZd fodkl dks c<+kok nsus ds
fy, gLr{ksi fMtkbu djus esa enn fey ldrh gSA
• Identifying the Drivers of Income Inequality : The Kuznets curve suggests that income inequality is driven by
structural changes in the economy as a country develops. By examining the factors that contribute to income
inequality at different stages of development, policymakers can identify the most effective ways to reduce
inequality.
vk; vlekurk ds pkydksa dh igpku djuk dqtusV oØ crkrk gS fd tSls&tSls ns'k fodflr gksrk gS] vk;
vlekurk vFkZO;oLFkk esa lajpukRed ifjorZuksa ls çsfjr gksrh gSA fodkl ds fofHkUu pj.kksa esa vk; vlekurk esa
;ksxnku nsus okys dkjdksa dh tkap djds] uhfr fuekZrk vlekurk dks de djus ds lcls çHkkoh rjhdksa dh igpku
dj ldrs gSaA
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8. • Evaluating the Effectiveness of Economic Policies : The Kuznets curve can be used to
evaluate the effectiveness of economic policies designed to reduce income inequality. By
comparing income inequality before and after the implementation of a policy, policymakers
can determine whether the policy has been successful in achieving its goals.
vkfFkZd uhfr;ksa dh çHkko'khyrk dk ewY;kadu dqtusV oØ dk mi;ksx vk; vlekurk dks de djus ds fy, fMtkbu
dh xbZ vkfFkZd uhfr;ksa dh çHkko'khyrk dk ewY;kadu djus ds fy, fd;k tk ldrk gSA fdlh uhfr ds dk;kZUo;u ls
igys vkSj ckn esa vk; vlekurk dh rqyuk djds] uhfr fuekZrk ;g fu/kkZfjr dj ldrs gSa fd uhfr vius y{;ksa dks
çkIr djus esa lQy jgh gS ;k ughaA
• Predicting the Future of Income Inequality : The Kuznets curve can also be used to make
predictions about the future of income inequality in a country. By examining the current
stage of development and economic growth, policymakers can estimate where a country is
on the Kuznets curve and predict how income inequality is likely to change in the future.
vk; vlekurk ds Hkfo"; dh Hkfo";ok.kh dqtusV oØ dk mi;ksx fdlh ns'k esa vk; vlekurk ds Hkfo"; ds ckjs esa
Hkfo";ok.kh djus ds fy, Hkh fd;k tk ldrk gSA fodkl vkSj vkfFkZd fodkl ds orZeku pj.k dh tkap djds] uhfr
fuekZrk ;g vuqeku yxk ldrs gSa fd dksbZ ns'k dqtusV oØ ij dgka gS vkSj Hkfo";ok.kh dj ldrk gS fd Hkfo"; esa
vk; vlekurk dSls cnyus dh laHkkouk gSA
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9. THANK YOU !!!!!
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