Indian Journal of Industrial Relations: Economics & Social Dev.

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Income Distribution, Employment Growth & the Kaldor-Verdoorn Growth Facts


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1 Department of Economics, Panjab University, Chandigarh 160014, India
     

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This paper advocates two different demand side explanations of the Verdoorn-Kaldor law that permits two different types of increasing returns with different employment implications. One is the realization of economies of scale that does not permit a strong relationship between employment growth and productivity growth. The other is the division of labor-led increasing returns as part of economic progress with robust induced employment growth for maintaining division of labor-led productivity growth in a cumulative manner.
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  • Income Distribution, Employment Growth & the Kaldor-Verdoorn Growth Facts

Abstract Views: 171  |  PDF Views: 1

Authors

Satya Prasad Padhi
Department of Economics, Panjab University, Chandigarh 160014, India

Abstract


This paper advocates two different demand side explanations of the Verdoorn-Kaldor law that permits two different types of increasing returns with different employment implications. One is the realization of economies of scale that does not permit a strong relationship between employment growth and productivity growth. The other is the division of labor-led increasing returns as part of economic progress with robust induced employment growth for maintaining division of labor-led productivity growth in a cumulative manner.