ABSTRACT
This chapter reviews the linkages between international division of labor and national income distribution in Third World countries. Changes in inequality of income distribution lead to further inequality because of preference patterns. The international division of labor is determined by the needs of the imperializing country and the relative strength or weakness of the imperialized country. The implications for the national division of labor and the class structure--that is, the character of the ownership of the means of production--are functions of the international division of labor. A skewed income distribution in both rural and urban/industrial areas, combined with high levels of rural and urban unemployment, necessarily result in highly unequal national income distribution. In all cases, including the limiting one in which no change in factor prices occurs, this analysis suggests that income distribution will become more unequal as a result of capitalist penetration.
