Does Inequality Augment Employment Growth? Revisiting Marx, Kalecki and Kaldor in the Indian Context

Dasgupta, Zico (2025) Does Inequality Augment Employment Growth? Revisiting Marx, Kalecki and Kaldor in the Indian Context. In: Contradictions of Democracy, Development and Inequality. Routledge India, London, pp. 105-188. ISBN 9781003527978

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Abstract

Zico Dasgupta, in this chapter, highlights the need for fiscal support as a policy instrument, a redistributive reform, to augment labour income over and above conventional development policies. The objective of increasing the growth rate of labour income in a capitalist economy has been conventionally linked to the objective of increasing the employment growth rate. By implication, macroeconomic policy frameworks in developing countries have aimed at augmenting labour income by relaxing the binding constraints on output growth rate like aggregate demand, availability of profits, food stock and foreign exchange reserves. Despite a sharp rise in output growth rate during the post-liberalisation period, however, the Indian economy registered a fall in the employment growth rate during the post-liberalisation period as compared to the 80s. The last two decades also registered a sharp decline in the income share of labour, reflecting a divergence between output growth rate and income growth rate of labour. This chapter attempts to provide a theoretical framework for identifying the constraints on employment growth rate and labour income during globalisation period over and above the output channel. Such analysis points towards the need for an alternative policy framework that goes beyond both conventional Keynesianism as well as what is termed as the New Consensus Framework.

Item Type:	Book Section
Authors:	Dasgupta, Zico
Editors:	Editors Email ORCID Banerjee, Taposik UNSPECIFIED UNSPECIFIED Chakraborty, Shouvik UNSPECIFIED UNSPECIFIED Gupta, Sejuti Das UNSPECIFIED UNSPECIFIED
Document Language:	Language English
Subjects:	Social sciences > Sociology & anthropology > Social interaction Social sciences > Social problems & services > Other social problems and services
Divisions:	Azim Premji University - Bengaluru > School of Arts and Sciences
Full Text Status:	None
URI:	http://publications.azimpremjiuniversity.edu.in/id/eprint/6759
Publisher URL:	https://www.taylorfrancis.com/

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