income distribution
income distributionThere are two types—functional and size. The functional distribution of national income shows how the total is made up of income from land, labour, and capital, or the contribution of each factor of production to the national income. In this context, income redistribution concerns arguments about whether profits should be reduced to augment employment income, for example. The size distribution of personal income shows the distribution of direct financial resources received by individuals, families, and households. This is now the most common meaning of the term. The focus is on the receipt of money income, excluding the social wage income implied by access to public goods such as state-funded education and health services.
There is no precise agreed definition of personal income, and no unambiguous operational definition setting out which items are to be included or excluded, and in what manner. Definitions tend to rely in...
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