Income distribution, demand structure and employment

The case of Peru

Bibliographic Data

ID20304058
AuthorsAdolfo Figueroa (Pontificia Universidad Católica del Perú, corresponding author)
Year1975
Volume11
Issue2
Pages20-31
Publication date1975-01-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueThe Journal of Development Studies (JOURNAL)
Journal identifiersISSN: 0022-0388 • E-ISSN: 1743-9140
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00220387508421523
OpenAlexW2042533662
LanguageEN
Citations received5
References cited1

The present growth process of Peru is characterized by a relatively low rate of labour absorption in the modem firms (together with growing urbanization and urban under‐employmenf). This fact, which is common in underdeveloped countries, has been usually attributed to factor market imperfections and/or imported technology. This study attempts to estimate empirically the hypothesis that the rate of industrial employment may also be influenced by the demand structure which is associated with the existing income distribution profile in Peru. The result is that income transfers from the rich to the poor would increase industrial employment. This ‘redistribution effect’ is not remarkably high, however. For example, a 3 per cent increase in industrial employment would require a selective redistribution of 6 per cent of Peru's national income. Notes Professor of Economics, Catholic University of Peru, (Lima)

Demographic economics · Developing country · Development economics · Distribution (mathematics) · Economic growth · Economics · Income distribution · Inequality · Labour economics · Political science · Redistribution (election) · Redistribution of income and wealth · Urbanization · Economic Theory and Policy · Income, Poverty, and Inequality · Labor market dynamics and wage inequality

Tools

Open DOISci-Hub