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==== Neoclassical theory of distribution ====
According to this theory, the distribution of national income is determined by factor prices, the payment to each factor of production (wage for labor, rent for land, interest for capital, profit for entrepreneurship) which themselves are derived from the equilibrium of supply and demand in that factor's market, and finally, are equal to the marginal productivity of the factors of production. A change in the quantity of any one of the factors will affect the marginal production, supply and demand of factors and eventually alter the income distribution from firms to households within the economy.<ref>{{Cite book |last=MANKIW |first=N. GREGORY |title=MACROECONOMICS |date=22 May 2015 |isbn=978-1-4641-8289-1 |edition=9th |pages=
=== Limitations ===
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#Earnings mobility: – Earning mobility evaluates the relationship between two certain generations by means of linear regression (upper math) of the long transformed measure of children's and parents' earnings.
# Total [[family income]] mobility and the mobility of women: – Old economic analysis has been making one mistake, that they did analysis that focused mostly on the father-son pairs and their individual earnings. In the last two decades, they have expanded their research and now they focus more on the mother-daughter pairs as well. Generally earnings provides a stable measure of well-being independently of another financial assets or any kind of transfers.
=== Labor union ===
It is known that [[labor union]] reduces the income inequality in both private and public sectors, and research conducted by [[David Card]] et al. showed that unionization redressed the income inequality in America and Canada, especially in their public sectors. For American male workers, the reduction of wage inequality was 1.7 percent in the private sector, while the reduction was 16.2 percent in the public sector. For American female workers, the reductions were 0.6 percent and 10.7 percent in the private and public sectors, respectively. In Canada, reduction effects were likewise more noticeable in the public sector.<ref> {{cite journal
| title = Unions and wage inequality: The roles of gender, skill and public sector employment.
| journal = Canadian Journal of Economics/Revue canadienne d'économique
| volume = 53
| date = Feb 2020
| vauthors = ((Card D, Lemieux T, Riddell WC))
}}
</ref>
== Distribution measurement internationally ==
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== Trends ==
[[File:Kuznets curve-en.
Standard economic theory stipulates that inequality tends to increase over time as a country develops, and to decrease as a certain average income is attained. This theory is commonly known as the [[Kuznets curve]] after [[Simon Kuznets]]. However, many prominent economists disagree with the need for inequality to increase as a country develops. Further, empirical data on the proclaimed subsequent decrease of inequality is conflicting.
Across the board, a number of industries are stratified across the genders. This is the result of a variety of factors. These include differences in education choices, preferred job and industry, work experience, number of hours worked, and breaks in employment (such as for bearing and raising children). Men also typically go into higher paid and higher risk jobs when compared to women. These factors result in 60% to 75% difference between men's and women's average aggregate [[Wage|wages]] or [[Salary|salaries]], depending on the source. Various explanations for the remaining 25% to 40% have been suggested, including women's lower willingness and ability to negotiate salary and [[sexual discrimination]].<ref>{{citation |author=CONSAD Research Corporation |title=An Analysis of Reasons for the Disparity in Wages Between Men and Women |url=http://www.consad.com/content/reports/Gender%20Wage%20Gap%20Final%20Report.pdf |archive-url=https://web.archive.org/web/20131008051216/http://www.consad.com/content/reports/Gender%20Wage%20Gap%20Final%20Report.pdf |url-status=dead |archive-date=8 October 2013}}</ref><ref>{{cite web |author=Patten, Eileen |date=14 April 2015 |title=On Equal Pay Day, key facts about the gender pay gap |url=http://www.pewresearch.org/fact-tank/2015/04/14/on-equal-pay-day-everything-you-need-to-know-about-the-gender-pay-gap/ |website=Pew Research Center |access-date=11 November 2023 |archive-date=16 April 2015 |archive-url=https://web.archive.org/web/20150416052153/http://www.pewresearch.org/fact-tank/2015/04/14/on-equal-pay-day-everything-you-need-to-know-about-the-gender-pay-gap/ |url-status=dead }}</ref><ref name="Blau">{{cite journal |last1=Blau |first1=Francine D. |last2=Kahn |first2=Lawrence M. |title=The Gender Pay Gap: Have Women Gone as Far as They Can? |journal=Academy of Management Perspectives |date=February 2007 |volume=21 |issue=1 |pages=7–23 |doi=10.5465/AMP.2007.24286161 |s2cid=152531847 }}</ref> According to the [[European Commission]] direct discrimination only explains a small part of gender wage differences.<ref>{{cite book |title=Tackling the Gender Pay Gap in the European Union |date=2013 |publisher=Publications Office of the European Union |isbn=978-92-79-28821-0 |url=http://ec.europa.eu/justice/gender-equality/files/gender_pay_gap/140319_gpg_en.pdf }}</ref><ref>{{cite web |title=What are the causes? - European Commission |url=http://ec.europa.eu/justice/gender-equality/gender-pay-gap/causes/index_en.htm |access-date=18 February 2016 |website=ec.europa.eu}}</ref>
A study by the [[Brandeis University]] Institute on Assets and Social Policy which followed the same sets of families for 25 years found that there are vast [[Affluence in the United States#Race|differences in wealth across racial groups]] in the United States. The wealth gap between Caucasian and African-American families studied nearly tripled, from $85,000 in 1984 to $236,500 in 2009. The study concluded that factors contributing to the inequality included years of home ownership (27%), household income (20%), education (5%), and familial financial support and/or inheritance (5%).<ref name="Shapiro1">{{cite web |author=Thomas Shapiro |author-link=Thomas Shapiro |author2=Tatjana Meschede |author3=Sam Osoro |date=February 2013 |title=The Roots of the Widening Racial Wealth Gap: Explaining the Black-White Economic Divide |url=http://iasp.brandeis.edu/pdfs/Author/shapiro-thomas-m/racialwealthgapbrief.pdf |access-date=16 March 2013 |work=Research and Policy Brief |publisher=[[Brandeis University]] Institute on Assets and Social Policy}}</ref> In an analysis of the American Opportunity Accounts Act, a bill to introduce [[Baby bonds|Baby Bonds]], [[Morningstar, Inc.|Morningstar]] reported that by 2019 white families had more than seven times the wealth of the average Black family, according to the [[Survey of Consumer Finances]].<ref>{{Cite web |last=Szapiro |first=Aron |date=6 October 2020 |title=Can Baby Bonds Shrink the Racial Wealth Gap? |url=https://www.morningstar.com/articles/1003066/can-baby-bonds-shrink-the-racial-wealth-gap |access-date=2021-08-04 |website=Morningstar.com |language=en}}</ref>
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===India===
India's economy was growing rapidly in 2011, but a big section of the population was still living in poverty, making income disparity a serious problem.<ref>{{cite
Post-tax Gini coefficient: In 2011, India's estimated Gini coefficient ranged from 0.33 to 0.36, indicating moderate to high levels of income inequality.
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The goal of social welfare initiatives like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is to provide jobs in rural areas.
Public Distribution System (PDS) and other subsidized food programs help low-income households maintain food security.
Economic changes like financial inclusion programs that give underprivileged people access to banking services in an effort to promote inclusive growth.<ref>{{cite journal |last1=Narayanan |first1=Sudha |last2=Gerber |first2=Nicolas |title=Social safety nets for food and nutrition security in India |journal=Global Food Security |date=December 2017 |volume=15 |pages=65–76 |doi=10.1016/j.gfs.2017.05.001 |bibcode=2017GlFS...15...65N }}</ref>
===Thailand===
[[Thailand]] has been ranked the world's third most unequal nation after Russia and India, with a widening gap between rich and poor according to [[Oxfam]] in 2016.<ref>{{cite news|last1=Sukprasert|first1=Pattramon|title=Thailand 'third most unequal'|url=http://www.bangkokpost.com/news/general/1193341/thailand-third-most-unequal|access-date=6 February 2017|work=Bangkok Post|date=6 February 2017}}</ref> A study by [[Thammasat University]] economist Duangmanee Laovakul in 2013 showed that the country's top 20 land owners owned 80 percent of the nation's land. The bottom 20 owned only 0.3 percent. Among those having bank deposits, 0.1 percent of bank accounts held 49 per cent of total bank deposits.<ref>{{cite news |last1=Chaitrong |first1=Wichit |title=Government urged to help 1.2m desperately poor Thais |url=http://www.nationmultimedia.com/detail/business/30352070 |access-date=14 August 2018 |work=The Nation |date=14 August 2019}}</ref> {{Asof|2019}}, Thai per capita income is US$8,000 a year. The government aims to raise it to US$15,000 (498,771 [[Thai baht|baht]]) per year, driven by average GDP growth of five to six percent. Under the 20-year national plan stretching out to 2036, the government intends to narrow the income disparity gap to 15 times, down from 20 times in 2018.<ref name="BP-20180814">{{cite news |last1=Theparat |first1=Chatrudee |title=Steering the NESDB through transition |url=https://www.bangkokpost.com/business/news/1521214/steering-the-nesdb-through-transition |access-date=14 August 2018 |work=Bangkok Post |date=14 August 2018}}</ref>
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* '''GDP''' per capita: $12 287.
* '''Poverty''' rate: 26.6%.
The highest income inequality is in the South Africa, based on 2019 data.<ref name=":0" />
=== Brazil ===
Income distribution is typically higher is typically higher in developing economies than in advanced economies. In most major emerging economies, income inequality rose over the past three decades (2016), namely in China, Russia, South Africa and India.<ref> Derviş, K., & Qureshi, Z. (2016). Income distribution within countries: Rising in===Chiequality. Global Economy and Development. Brookings.</ref>
Even though Brazil has managed to lower its income inequality, it is still very high compared to the rest of the world, with around half of the total income being concentrated among the richest 10 per cent, a little above a fifth among the top 1 per cent, and close to one tenth among the top 0.1 per cent.<ref>Piketty, T. 2014. Capital in the XXI century. Cambridge, MA: Harvard University Press.</ref>
* '''Gini''' coefficient: 0.52(2022)
* '''Unemployment''' rate: 8.032% (2024).<ref>{{cite web |url= https://gfmag.com/data/economic-data/world-unemployment-rates/ |title= Unemployment Rates Around the World 2024 |last= |first= |date= 18 April 2024|website= |publisher= |access-date= |quote=}}</ref>
* '''GDP''' per capita: $17,827.6 (2022)
* '''Poverty''' rate: 1.4% (3,65$) (2023)
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* '''Gini''' coefficient: 0.371(2020)
* '''Unemployment''' rate: 5.1% (2024)<ref>{{cite web |url= https://gfmag.com/data/economic-data/world-unemployment-rates/ |title= Unemployment Rates Around the World 2024 |last= |first= |date= 18 April 2024|website= |publisher= |access-date= |quote=}}</ref>
* '''GDP''' per capita: $21,482.6 (2022)
* '''Poverty''' rate: 2% (3,65$) (2020)
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* '''GDP''' per capita: $77,953.7 (2022), $68,178.0 (2022), $121,259.2 (2022), $62,823.0 (2022), $71,840.1 (2022)
* '''Poverty''' rate: 0,2% (3,65$) (2021), 0,8% (3,65$) (2021), 0,3% (3,65$) (2019), 0% (3,65$) (2021), 0% (3,65$) (2017)
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* [[Affluence in the United States]]
* [[Kinetic exchange models of markets]]
* [[Median income]]
* [[Median household income]]
* [[Personal income in the United States]]
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[[Category:Income distribution| ]]
[[Category:Macroeconomic indicators]]
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