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Division of labor and the distribution of income
Authors:P. Varaiya  R. Artle  C. Humes
Affiliation:College of Engineering, University of California, Berkeley, CA 94720, USA
Abstract:Earlier work dealing with the effects on intersectoral migration of increased productivity is extended in the light of Vislie's paper. Specifically included is the possibility of different wages in different sectors. Such differences, and changes in such wage differences, may lead to redistributions of income, which in turn open up possibilities of demand changes. Disequilibrium analysis is the principal analytical tool used, and it is suggested that not only the earlier work of Simon and Baumol but also the more recent studies by Harris-Todaro, Houthakker and Vislie can be integrated into the conceptual framework here developed.
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