Income Distribution and Dualism: The Case of Kenya

Development economics has been dominated by the use of dualistic models of the economy. This study investigates whether the stylized facts that emanate from models, such as those of Sir Arthur Lewis and Harris and Todaro, arerelevant in examining issues of income distribution. Based on an examination of Kenyan household data, estimates of the distribution are compared with the stylized facts and past estimates. It is found that while the focus onrural–urban differences that arises from the dualistic models is justifiable, this concern with the spatial duality has led to the neglect of intrasectorial inequality, particularly rural inequality.