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What is “income distribution”?

According to Oxford Economics dictionary income distribution is “The division of total income between different recipients. *Functional income distribution is the division of income between the owners of the different factors of production. *Personal income distribution is the distribution of income classified by size. Income distribution can be measured before and after the deduction of direct taxes and the addition of transfers.” (pg 216)

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Income distribution just represents, how the income is distributed amongst the people in an economy. Some countries face a huge problem of income inequality and income inequality is “Income inequality describes the extent to which income is distributed unevenly among residents of an area. High levels of inequality indicate that a small number of people receive most of the total income, and that most ... Read more »