What is distribution in economics?

In economics, distribution is the way total output, income, or wealth is distributed among individuals or among the factors of production (such as labour, land, and capital ). In general theory and in for example the U.S. National Income and Product Accounts, each unit of output corresponds to a unit of income.

What is income distribution?

The term “income distribution” is a statistical concept. No one person is distributing income. Rather, the income distribution arises from people’s decisions about work, saving, and investment as they interact through markets and are affected by the tax system.

What does income distribution tell us about a country?

Income distribution tells us much more about a country’s economy and its wage patterns than average income does. It can tell us, for example, how big the income gap is between university graduates and other people. In other words, it gives us insight into levels of inequality within a country. There are many types of inequality.