ABSTRACT
This chapter provides a link growth with inequality of income distribution, thus linking the sectoral and functional distributions with family distribution of income as a whole. It trace the impact of changes in the structures of intersectoral and intrasectoral growths on the inequality of household distribution of income as a whole. Growth in the relative shares of labor in nonagricultural income can, in turn, be tied up with the existing theory of development. The distribution of property income had much the same trend in each income group as that of wage income. Korea has achieved an unprecedented record of economic growth since the early 1960s while simultaneously experiencing an improvement in the overall distribution of income until 1970. The essence of development in the dualistic economy as in Korea is the gradual reallocation of resources, particularly labor from agricultural to nonagricultural activities.
