The Employment Distribution and the Creation of Financial Dependence

William Jackson

EconStor Open Access Articles and Book Chapters, 1991, vol. 14, issue 2, 267-280

Abstract: A fall in national income has varied consequences for the working population: some carry on working as normal, others become unemployed. Those excluded from work lose their main income source and must usually rely on public welfare, entering a financial dependence created endogenously as the economy adjusts. The current paper examines this induced financial dependence and its implications within a Post Keynesian model. A skewed employment distribution forces higher transfer payments than would occur if employment was distributed more evenly. The additional expenditures help to sustain profitability, so it is in the collective interest of employers and profit recipients to concentrate unemployment in a subset of the working population.

Keywords: unemployment; social security; financial dependence; distribution; Keynesian economics; consumption function (search for similar items in EconPapers)
JEL-codes: E12 E21 H53 I38 J64 (search for similar items in EconPapers)
Date: 1991
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Journal Article: The Employment Distribution and the Creation of Financial Dependence (1991)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:324861

DOI: 10.1080/01603477.1991.11489897

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