AbstractThe relative importance of social class differences (social differentiation) and stages of the family development cycle (demographic differentiation) on income inequalities in rural Rwanda are discussed and compared using survey data from 1,019 households. Both forms of differentiation are conceptualized as dynamic processes that intersect through their mutual inclusion of landholding—land being fundamental to our understanding of social class in the Third World and likewise closely tied to the timing of the developmental stages of the family cycle. Findings demonstrate that both forms of differentiation are vitally important, in roughly equal proportions, to household income generation in Rwanda. Emphasis is placed on the direct effects of the social class variables and on the indirect effects of the demographic differentiation process. The importance of the impact of contextual variables, such as land scarcity and the absence of alternative nonfarm employment, on income inequality are assesse