Income Redistribution, Consumption and Employment

Jeffrey James
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Jeffrey James: Tilburg University

Chapter 11 in Consumption and Development, 1993, pp 223-246 from Palgrave Macmillan

Abstract: 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

Keywords: Total Income; Consumption Expenditure; Consumption Function; Income Redistribution; Urban Sector (search for similar items in EconPapers)
Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-22658-0_11

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DOI: 10.1007/978-1-349-22658-0_11

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