Contents

Abstract 1702

Keywords 1702

Introduction 1703

1. Statistical relationships between growth and social structures 1705

2. The effect of economic growth on social structures:

Theoretical considerations 1711

2.1.

2.2. General equilibrium models of the distributional effects of growth 1715

2.3. Nonlinearsavingsbehavior 1719

2.4. Theroleoftechnicalprogress 1720

2.5. Conclusion 1722

3. The effect of economic growth on social structures: Empirical evidence 1723

3.1. The sectoral shift effect of growth on social structures 1723

3.2. Effect of growth on inequality between socio-economic groups 1726

3.2.1. Sectoralincomedifferentials 1726

3.2.2. Effect of education on earnings 1727

3.2.3. Gender earnings differentials 1730

3.3. Effects of growth on inequality among individuals 1731

3.3.1. Correlation between growth and inequality: rise and fall of the Kuznets curve 1732

3.3.2. Towards structural estimates of the effects of growth on distribution? 1734

3.3.3. Case study analysis 1736

4. Conclusions 1739

4.1. The foremost importance of sectoral shift phenomena 1739

4.2. The role of market integration 1739

4.3. Social costs of transitory adjustment 1740

4.4. Effect of growth on social structures through social institutions 1740

Acknowledgements 1742

References 1742