In economics, income distribution is how a nation’s total GDP is distributed amongst its population.
Income and distribution has never been a central concern of economic theory and economic policy. Classical economists such as Adam Smith, Thomas Malthus and David Ricardo were mainly concerned with factor income distribution, that is, the distribution of income between the main factors of production, land, labour and capital.
Modern economists have also addressed this issue, but have been more concerned with the distribution of income across individuals and households. Important theoretical and policy concerns include the relationship between income inequality and economic growth.
The distribution of income within a community may be represented by the Lorenz curve. The Lorenz curve is closely associated with measures of income inequality, such as the Gini coefficient.
Read more about Income Distribution: Measurement, Causes, Distribution Measurement Internationally, Trends
Famous quotes containing the words income and/or distribution:
“I had always been so much taken with the way all English people I knew always were going to see their lawyer. Even if they have no income and do not earn anything they always have a lawyer.”
—Gertrude Stein (1874–1946)
“My topic for Army reunions ... this summer: How to prepare for war in time of peace. Not by fortifications, by navies, or by standing armies. But by policies which will add to the happiness and the comfort of all our people and which will tend to the distribution of intelligence [and] wealth equally among all. Our strength is a contented and intelligent community.”
—Rutherford Birchard Hayes (1822–1893)