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The employment effects of an income redistribution in developing countries

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  • James, Jeffrey
  • Khan, Haider A.

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
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Suggested Citation

  • James, Jeffrey & Khan, Haider A., 1993. "The employment effects of an income redistribution in developing countries," World Development, Elsevier, vol. 21(5), pages 817-827, May.
    • Handle: RePEc:eee:wdevel:v:21:y:1993:i:5:p:817-827
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    Cited by:

    1. Zafar Iqbal & Rizwana Siddiqui, 1999. "Distributional Impact of Structural Adjustment on Income Inequality in Pakistan: A SAM-based Analysis," MIMAP Technical Paper Series 1999:02, Pakistan Institute of Development Economics.
    2. Zafar Iqbal & Rizwana Siddiqui, 1998. "The Impact of Structural Adjustment on Income Distribution in Pakistan A SAM-based Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 377-397.
    3. Jeffrey James & Haider A. Khan, 1998. "Technology Choice and Income Distribution," Palgrave Macmillan Books, in: Technological Systems and Development, chapter 6, pages 105-130, Palgrave Macmillan.
    4. Schettino, Francesco & Gabriele, Alberto & Khan, Haider A., 2021. "Polarization and the middle class in China: A non-parametric evaluation using CHNS and CHIP data," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 251-264.
    5. Khan, Haider & Schettino, Francesco, 2018. "Income Polarization in the USA (1983-2016): what happened to the middle class?," MPRA Paper 85554, University Library of Munich, Germany.
    6. Rizwana Siddiqui & Zafar Iqbal, 1999. "Salient Features of Social Accounting Matrix of Pakistan for 1989-90: Disaggregation of the Households Sector," MIMAP Technical Paper Series 1999:01, Pakistan Institute of Development Economics.
    7. Alvaro Gallardo & Cristian Mardones, 2013. "Environmentally extended social accounting matrix for Chile," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(4), pages 1099-1127, August.
    8. Schettino, Francesco & Khan, Haider A., 2020. "Income polarization in the USA: What happened to the middle class in the last few decades?," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 149-161.
    9. Manfred Lenzen & Roberto Schaeffer, 2004. "Environmental and Social Accounting for Brazil," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(2), pages 201-226, February.
    10. James, M.J. & Khan, H., 1997. "Technology choice & income distribution," Other publications TiSEM 6f76a538-55bd-4a1b-bcbb-5, Tilburg University, School of Economics and Management.

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