Levels of Remuneration, Factor Proportions and Income Differentials with Special Reference to Developing Countries

  • Samir Amin


Current theory clearly demonstrates that, as far as the choice of production technique is concerned, high wage rates lead entrepreneurs to choose, from among various equally effective combinations of the factors capital and labour, the one that results in a saving of labour and a more intensive employment of capital; and conversely, that low wage rates induce them to substitute labour, which is plentiful in the less-developed economies, for capital, which is scarce.


Wage Rate Ivory Coast Urban Economy Underdeveloped Country Muslim Population 
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  1. 1.
    J. L. Lacroix, L’Industrialisation du Congo (1966) I would go further than Lacroix, who concludes that the choice of more capital-intensive techniques is advantageous only if they are accompanied by a more than proportionate increase in labour productivity (p. 87).Google Scholar

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© The International Institute for Labour Studies 1969

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  • Samir Amin

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