Rural Industrialization and the Changing Distribution of Family Incomes

Abstract

Income distribution has been a central topic in political economy and has received continuing emphasis by our profession. Few studies, however, have been undertaken to examine the distribution effects of rural industrialization. Notable exceptions are two recent studies which call attention to the effects of industry on the lowest income groups (Reinschmidt and Jones, Kuehn et al.). With poverty diminution remaining an important matter of public policy, the changing size distribution of family income among new industrial workers must be a central concern for rural development policy. The size distribution of income is important in shaping the social structure of society, in reducing transfer payments, in lowering development costs, and in facilitating recovery of investment in human capital.