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

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.