Abstract
The purpose of this paper is to study the impact of income redistribution on the output structure and the level of income distribution. This paper is based on Semi closed static Input-output model applied on the economy of Uttar-Pradesh, India. The discussion of empirical findings suggests that distribution of additional income to the rural/urban poor people will not be helpful in poverty reduction in the long run. What requires is the redistribution of productive assets and skill formation to generate sustainable and permanent income for them. Employment generation programs for the poor will be more effective in poverty reduction.
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