In this book, a model of long-term interrelationships
between income distribution, population growth and economic
development is developed and estimated from data for 54
countries. The results indicate that a reduction of income
inequality leads to lower fertility and mortality, to
improvedbasic needs satisfaction, and to lower labour force
participation of young and old males and of females in Asia
and Africa. The effect of income distribution on saving and
consumption is found to be negligible. These outcomes
suggest that family planning and health policies in LDCs
will show better results when they are supplemented with
policies aimed at makingthe poor benefit from economic
growth. As regards development policy, the results indicate
that a reduction of income inequality does not impair the
formation of physical capital, but enhances the formation of
human capital and lowers the growth rate of the labour
force.