The Theory of Equal Employment Distribution: A Unified Resolution to Core Macroeconomic Dilemmas

The Theory of Equal Employment Distribution: A Unified Resolution to Core Macroeconomic Dilemmas | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article The Theory of Equal Employment Distribution: A Unified Resolution to Core Macroeconomic Dilemmas ABU SUFIYAN This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-9047907/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This paper develops the Theory of Equal Employment Distribution (TEED) as a unified framework for addressing persistent macroeconomic challenges of low growth, inequality, and instability. Unlike conventional approaches that focus on the quantity of employment, TEED emphasizes how employment is distributed across households. When jobs are concentrated within multi-earner households while others remain jobless, aggregate demand remains structurally constrained because high–marginal-propensity-to-consume (MPC) households are excluded from the income stream. The theory demonstrates that reallocating existing employment toward high-MPC households increases aggregate consumption even when total employment, income, and the money supply remain unchanged. This redistribution generates a redistributive multiplier that raises equilibrium output and welfare without fiscal expansion, monetary easing, or inflationary pressure. Embedding the mechanism within a general equilibrium framework, the paper shows limited crowding-out effects and long-run productivity spillovers. Empirical evidence from a multi-country panel supports the theory’s central predictions. The findings position employment equality as a structural engine of inclusive and non-inflationary growth. JEL Codes: E12; E21; E24; D31; O11. Macroeconomics Development Economics Employment Allocation Aggregate Demand Household Heterogeneity Redistribution General Equilibrium Full Text Additional Declarations The authors declare no competing interests. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-9047907","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":601733287,"identity":"9cded78b-5198-4638-8179-30bb009f9a57","order_by":0,"name":"ABU SUFIYAN","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAABDUlEQVRIiWNgGAWjYDACCRBhAyLZDxz4UGEDZDA2HiCsJQ1E8iQ+nHEmDaSlgRgtYKaxMW/bYTALrxb+2T3Gn3kSLBL7ZzekSfC2nbdb234YaEuNTTROS+6cMZPmSZBInHHn4DEJiXO3k7edSQRqOZaW24BLz40cM2beHxKJDTcS0iQMym4nmx0AamFsOIxTi/yNHJDDJBLn30gwk0hgO5dsdv4hfi0GN3IMwA7bcCPB2OBA2wE7sxsEbDG8c6xMck6ChPHGGzmJDxvOJCeY3QDakoDHL3K3mzd/eJNQJzvvRvqBw38q7OzNzqc/fPChxga396HAEaYgEcxIIKAcBOwxGKNgFIyCUTAKYAAAcyprQJ2alzAAAAAASUVORK5CYII=","orcid":"https://orcid.org/0009-0006-7928-7324","institution":"Aligarh Muslim University","correspondingAuthor":true,"prefix":"","firstName":"ABU","middleName":"","lastName":"SUFIYAN","suffix":""}],"badges":[],"createdAt":"2026-03-06 08:20:03","currentVersionCode":1,"declarations":{"humanSubjects":true,"vertebrateSubjects":false,"conflictsOfInterestStatement":false,"humanSubjectEthicalGuidelines":true,"humanSubjectConsent":true,"humanSubjectClinicalTrial":false,"humanSubjectCaseReport":false,"vertebrateSubjectEthicalGuidelines":false},"doi":"10.21203/rs.3.rs-9047907/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-9047907/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":104404276,"identity":"294aa415-fb62-458e-bd1c-7bab7fc09de1","added_by":"auto","created_at":"2026-03-11 12:19:59","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":385726,"visible":true,"origin":"","legend":"","description":"","filename":"TheTheoryofEqualEmploymentDistribution.pdf","url":"https://assets-eu.researchsquare.com/files/rs-9047907/v1_covered_59c2feb9-0259-4c75-ba25-7416da21b5c2.pdf"}],"financialInterests":"The authors declare no competing interests.","formattedTitle":"\u003cp\u003eThe Theory of Equal Employment Distribution: A Unified Resolution to Core Macroeconomic Dilemmas\u003c/p\u003e","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"Aligarh Muslim University","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Employment Allocation, Aggregate Demand, Household Heterogeneity, Redistribution, General Equilibrium","lastPublishedDoi":"10.21203/rs.3.rs-9047907/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-9047907/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis paper develops the Theory of Equal Employment Distribution (TEED) as a unified framework for addressing persistent macroeconomic challenges of low growth, inequality, and instability. 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