functional distribution of income

Functional distribution of incomeclick for a larger image
Fig. 78 Functional distribution of income. The functional distribution of national income for the UK, 2003. Source: UK National Accounts (Blue Book), ONS 2004.

functional distribution of income

the distribution of NATIONAL INCOME classified according to type of FACTOR INPUT: LABOUR CAPITAL, etc. Here income is seen as a payment for the various factor inputs in contributing to the output of the economy WAGES constitute the largest single element in factor payments, as Fig. 78 shows. See PERSONAL DISTRIBUTION OF INCOME.
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However, they are not so strict against an inequitable functional distribution of income that is between capitalists and wage earners as they are against an inequitable income distribution within wage earners that is between managers and production workers or between supervisory and non-supervisory staff.
Thus, the NIPA measures of compensation are particularly useful in analyses of labor's share in the functional distribution of income.
In Section 1, research on rising income inequality, falling real wages, or changes in the personal or functional distribution of income or wealth is discussed in a manner that is consistent with supporting hypotheses that wealth and income are becoming more unequally distributed and that workers are falling behind because real wages are falling relative to past trends.
production for nearly 80 years and that implies a relatively stable functional distribution of income. Both lines in Figure 5 are relatively stable, illustrating the well-known relative constancy of the share of labor in cost and in the nation's output and domestic income.
(1) Along with the changes in the functional distribution of income a process of biased technological change took place, and these facts together lead to the industrial revolution and the subsequent industrialization of the economies.
A similar result was obtained by Bertola (1993) who relates the growth rate of the economy to the functional distribution of income in an endogenous growth model.
To our knowledge, this is the first model of biased innovation that explains the transition from stagnation to sustained growth through the functional distribution of income.
"The Functional Distribution of Income in the United States, 1850-1952," Review of Economics and Statistics, vol.
The focus of interest in macroeconomics is the functional distribution of income rather than the personal distribution.
With its continuously falling share of profits Russia stands out as a case of changing functional distribution of income. We may suspect that this development lead to declining investment and as a consequence declining GDP income, Russia 1992-1998.
The third paper, by Samuel Bowles, deals with an altogether different topic--a theory of the functional distribution of income (the shares of labor and capital) in an open economy.
The information gathered from our sample also does not unambiguously support the predictions made by the pioneers--e.g., by Lewis--regarding a worsening of the functional distribution of income between labour and capital as an inevitable consequence of high rates of economic growth.

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