Investment-led growth, employment, and income distribution: Conceptualizing a post-Keynesian employment Phillips curve dynamics in India
Year: 2025
Type: article
Abstract: The present study aims at studying productivity growth, employment, and income distribution in a Young-Kaldor investment dynamics in which productivity growth and a higher markup sustaining investment are endogenous to growth and support better employment and wage outcomes. Investment-led growth requires equality of investment and profit. However, it also involves increases in wages as compensation for the increased incidence of specialized employment, which adds force to the investment-led dynamics. It is contended that empirical support for this investment-led transitional dynamics can point towards an employment Phillips curve: a positive correlation between wages and employment at given prices. A lack of dynamic evolution can indicate wage-price correlation, but without necessarily having spiral connotations, and provides alternative understandings to the price Phillips curve on which the literature focuses.
Author: Padhi, Satya Prasad
Language: English
Topic: Economic Theory and Policy
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7090237116