Full Employment: The First Step Towards Economic Equality

Jairo Morales-Nieto ()
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Jairo Morales-Nieto: INAFCON

Africagrowth Agenda, 2021, vol. 18, issue 1, 10-15

Abstract: This paper’s title seems to be too obvious considering the extensive evidence of a positive statistical correlation between full employment and reduction of income inequality in the sense that increases in employment move income equality in the same direction. Interesting axiom, indeed, but a perspicacious reader could ask, what is then this paper’s novelty? The controversial point is that most orthodox economists dislike using government policy means to bring together both concepts of employment and equality in the public discussion. Why does this happen? Answer that question is one of the core subjects of this paper that seeks at uncovering the simplicities and the complexities of a long-standing debate. Another matter of interest in this writing relates to exploring ways to build a new theoretical framework to systemically link both concepts as a proper substantive economic policy matter. Finally, to connect theory with reality, an outline of a kind of strategy game is given to show how to realize full employment and reducing wealth and income inequality in practice without harming the achievement of other crucial economic policy objectives, for instance, price stability and fiscal balance beyond manageable limits. It remains to say that this article puts a high emphasis on normative economics to set up fundamental bases that may lead to undertaking further elaborations in the field of positive economics or fact-based knowledge.

Date: 2021
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