Income distribution and types

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income distribution throughout the world's history has been uneven and remains so today.This situation is caused by a variety of circumstances, both objective and subjective.

to explain the reasons for this inequality, it is necessary, first of all, to understand that, in fact, represent revenues.In the ordinary sense income - is a certain amount of money received by the subject for a period.And the form of income may be different - the salary, royalties, rents, interest, profits, different payments by transfer of property (social security benefits, unemployment benefits, family allowances, etc.).

Incomes, the parameters of their structure, levels, degree of differentiation and the sources of an important indicator of the economic and social state of society and decisively affect the distribution of national income.Since revenues act as the main source to meet the needs, and their consideration involves the correlation of this notion with a broad and capacious in content - standard of living, and the problem of the distribution of income in favor of one of the central problems in economics.

important to understand what constitutes income and what is their structure, which sources are the basis for their formation.

concept of "income" is a complex economic category.This complexity is due to the fact that it is extremely difficult structured.

in science under the personal income is usually considered received by the individual funds that can be expressed in kind and cash, and which serve to ensure a decent standard of life.

With the concept of "income distribution" objectively interrelated problem of social inequality, the source of which just serves the inequality in their distribution.

One of the fundamental aspects of modern social policies in almost every country, is positioned pursued at the state level incomes policy.

applied to individuals or households, incomes are classified in cash and kind.The first of them - this is the amount of money that an individual gets to meet their vital needs.

to subsistence income are those that the individual receives the results of the agricultural activities, animal husbandry, as well as various works and services that are produced and consumed in kind.

cash income - the amount of money that an individual receives over a certain period of time and serve as a means of payment items, providing his personal consumption.

for accurate understanding of the income they classify and define concepts: nominal, and real disposable.

Rated - is all income, the value of which does not depend on the actions of the tax system and the existing level of prices on the market.

Disposable - is the same nominal income, but deducted from it the amount paid taxes and other obligatory payments.

Real income is the amount of goods that can be purchased for the value of the individual disposable income.

In practice, the distribution of income takes place on the basis of different approaches and theories.One of them - the theory of marginal productivity, which is quite simple: the more one produces, the higher the income that arises from him as a reward for the work.

However, such an approach is not always justified.This is because:

  1. Imperfect competition is not always adequately reflect the amount of labor expended on the production of a particular type of goods.
  2. inequality in the distribution and redistribution of income is an objective factor in the development of society.
  3. In every society, the number of income-generating always less than those who become their owner, so the application of the principles of justice is very relative and limited.

Accordingly, the required inclusion of redistribution mechanisms that re-adjust the flows of funds in accordance with the priorities of society and its laws.Therefore, there are other mechanisms and types of operation of the distribution system.For example, the distribution of income between the available variety of factors of production, acquires the properties of the functional distribution, forming and related income - rent, profit, and various types of wages.They are called - factorial or primary.They form the secondary - which arise as a result of redistribution systems - pensions, benefits and a variety of other transfer payments.

All revenues are essential to the harmonious development of society and ensure social stability.A significant role in their formation and regulation of the state should play and its role in the framework of this function is increasing.