Rural industrialization objectives: The income-employment conflict

This paper examines the existence of a trade-off between employment and income levels as objectives of rural industrialization. The theoretical approach suggested in order to explain conflicting views regarding the relations between these objectives treats separately static conditions, dynamic conditions and long-term projections. Some of these considerations are tested using empirical data relating to rural industrialization in Northeast Brazil. The conclusions reached refer to some indications of optimal industrialization policies for the achievement of alternative development objectives.