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Migration and Inequality in Germany 1870-1913$
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Oliver Grant

Print publication date: 2005

Print ISBN-13: 9780199276561

Published to Oxford Scholarship Online: January 2010

DOI: 10.1093/acprof:oso/9780199276561.001.0001

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Industrialization, Migration, and Inequality

Industrialization, Migration, and Inequality

Chapter:
(p.293) 9 Industrialization, Migration, and Inequality
Source:
Migration and Inequality in Germany 1870-1913
Author(s):

OLIVER GRANT

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199276561.003.0009

The Lewis Model is one possible explanation of the Kuznets Curve: the prediction that inequality will rise during the initial stages of industrialization, and then fall as the economy reaches maturity. Bringing together the views of Weber, Lewis, and Kuznets produces a coherent model of economic development: the impact of industrialization and the spread of capitalist values brings about the release of surplus labour from agriculture; this holds back wage increases in industry and raises the profit share; which in turn leads to a rise in inequality in the economy as a whole. This chapter examines the evidence of a rise in inequality, making particular use of Prussian tax statistics.

Keywords:   Lewis Model, Kuznets Curve, inequality, Prussian tax statistics, industrialization

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