Income distribution
From Wikipedia, the free encyclopedia
Image:American Society.jpg Income distribution has always 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.
[edit] Income distribution in the United States
In the United States income was distributed somewhat inequally with those in the top two quintiles earning more than the bottom 60% combined. Yet, the distribution of income not near as polarized as in many developing countries with most of America's earned income resting in the hands of the middle class.
| Aggregate income distribution, 2005<ref>2005 Economic Survey, income data. US Census Bureau (May 2005).</ref> | |||||||||||||||||||||||||||||||||||||||
| Percentage of the total income earned by each income group | |||||||||||||||||||||||||||||||||||||||
| 10% | 20% | 30% | 40% | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| less than $25,000 | 6.76% | ||||||||||||||||||||||||||||||||||||||
| $25,000 to $50,000 | 18.12% | ||||||||||||||||||||||||||||||||||||||
| $50,000 to $75,000 | 22.54% | ||||||||||||||||||||||||||||||||||||||
| $75,000 to $100,000 | 20.00% | ||||||||||||||||||||||||||||||||||||||
| $150,000 or more | 32.58% | ||||||||||||||||||||||||||||||||||||||
[edit] See also
- Household income in the United States
- Income inequality
- Six figure income
- Median household income
- Income quintiles
[edit] External links
- The Polarization of the U.S. Labor Market, economics.harvard.edu
