The Employment Effects of an Income Redistribution in Developing Countries

Jeffrey James and Haider Khan ()
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Jeffrey James: Tilburg University

Chapter 5 in Technological Systems and Development, 1998, pp 87-104 from Palgrave Macmillan

Abstract: Abstract The 1970 ILO Mission Report to Colombia first proposed the notion that since the poor tend to consume a more labour-intensive basket of commodities than the rich, a redistribution of income in their favour will tend to increase employment. This proposal gave rise to a host of attempts in the 1970s to demonstrate its empirical validity in a number of developing countries. The results however provided only a very limited degree of support to the ILO hypothesis. Indeed, by 1978 ‘the clear conclusion of the general equilibrium macroeconomic models’ was that ‘income redistribution would have only a tiny effect on employment’.1

Keywords: Computable General Equilibrium; Employment Effect; Consumption Function; Income Redistribution; Household Group (search for similar items in EconPapers)
Date: 1998
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Journal Article: The employment effects of an income redistribution in developing countries (1993)
Working Paper: The employment effects of an income redistribution in developing countries (1993)
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DOI: 10.1007/978-1-349-26413-1_5

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