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The Employment Effects of an Income Redistribution: a Test for Aggregation Bias in Indian Manufacturing

In: Technological Systems and Development

Author

Listed:
  • Jeffrey James

    (Tilburg University)

  • Haider A. Khan

    (University of Denver)

Abstract

The ILO Mission Report on Colombia espoused the idea that since the poor tend to consume relatively more labour-intensive commodities than the rich, a redistribution in their favour will tend to increase employment.1 This proposal led subsequently to a host of attempts to demonstrate its empirical validity at the economy-wide level in a number of less-developed countries.2 The results, however, gave only qualified support to the hypothesis. As Morawetz put it, ‘The almost unanimous conclusion is that even quite significant redistributions of income seem likely to have only marginal effects on growth and employment, usually increasing the latter by less than 5%.’3

Suggested Citation

  • Jeffrey James & Haider A. Khan, 1998. "The Employment Effects of an Income Redistribution: a Test for Aggregation Bias in Indian Manufacturing," Palgrave Macmillan Books, in: Technological Systems and Development, chapter 3, pages 43-61, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-26413-1_3
    DOI: 10.1007/978-1-349-26413-1_3
    as

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