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This study aims to focus on the influence of industrial structure changes, which is the fundamental idea of the Kuznets hypothesis, especially the service–knowledge structural change, on income inequality.

This analysis uses the interaction term is that industrial structure changes multiplied by period dummy, this study indicates the effect of industrial structure changes on inequality from the 1970s. Using this method, this study reveals the impact of transitions in industrial structure, from agriculture to knowledge, on inequality.

Empirical analysis reveals a Kuznets curve relationship between income inequality and the agriculture–manufacturing structural change before the 1970s. From the 1980s to the 2000s, “The Great U-Turn,” which refers to events that expanded economic inequalities again, is observed in the relationship between inequality and the manufacturing–service structural change. Moreover, the service–knowledge structural change effect on inequality after the 2010s, through the Kuznets curve relationship. Therefore, this study confirms the Kuznets hypothesis is not a thing of the past hypothesis.

This study shows why income inequality in organisation for economic co-operation and development (OECD) countries has continued to increase in these days. Specifically, this study focuses on the impact of industrial structure changes and long-term trends, which has not been fully discussed in recent studies. The authors perform empirical analysis based on the relationship between these changes and inequality in developed countries. In addition, by setting a period dummy variable every decade, this study visualizes the transition of industrial structure changes in OECD clearly.

The purpose of this paper is to explore the empirical relationship between the share of immigrants and the price elasticity of import demand.

We estimate the import demand function including the interaction term of the share of immigrants and relative import price, using panel data of 76 countries/areas.

The coefficient of the interaction term is significantly positive, that is, a higher share of immigrants weakens the negative effect of the relative import price on import demand. Our findings reveal the negative relationship between the share of immigrants and the price elasticity of import demand.

The share of immigrants is increasing in the present era of globalization, and it is possible that the role of exchange rate as the price adjustment mechanism in international trade become lower in the future.

This research considers different price elasticities for import goods by immigrants and natives.