Abstract
This paper discusses the impact of a redistribution of current income from the White to the Black population on the distribution of sectoral output, and total employment by means of a semi‐closed input‐output model.
The results show that a redistribution of current income towards Black households — which no doubt will have positive social and political repercussions — has a non‐negative effect on GDP and a definite positive effect on the performance of sectors with a high private consumption expenditure component, as well as on total employment.
Notes
Research Assistant, Institute for Futures Research, University of Stellenbosch. The author is grateful for the helpful comments and suggestions of Prof W H Thomas and Dr A Roukens de Lange.