Institute for Development Studies, University of Nairobi

The paper is a survey of the literature analysing the development of income distribution in the less developed countries. First, a number of cross-section studies are reviewed. Then the results from a number of studies concerning the development of inequality in Latin American, Asia, and African countries are presented. It was found that income distribution had deteriorated in a number of countries. Finally, the factors which have been shown to determine the development of income distribution are summarized. These concern institutions, structural change, functional distribution, asset distribution, financial markets, human capital, labour market, social stratification, market imperfections, trade policy, domestic policy, spatial factors, trade unions, and demographic factors.