Linking Economic growth to the distribution of income In the mid-twentieth century, distribution was of concern to economist such as Lewis (1954), Kuznets (1955), and Kaldor (1956, 1957). -For Lewis, growth was driven by the movement of labour from a low- productivity sector to one characterized by a high-productivity -Kuznets approach was in line with this, but proposed that if inequality between sectors was higher than within each sector, then inequality would first rise as people moved from low wage to high wage sectors, and then fall as the movement from one sector to the other equalized incomes across them. See graph two pages ahead .... -Kaldor's contribution to early growth theory posited that the capital to labour ratio was crucial to growth: as the capital to labour ratio rose above its equilibrium, wages would rise relative to profits and since the savings rate from wages is less than from profits, capital accumulation would decline and the capital to labour ratio would fall back to its equilibrium