Can You Explain Unequal Income Distribution?


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Muhammad Abdullah786 Profile
The market mechanism suggests that factors pricing will take place on the ground of demand for a factor and supply of factor. Moreover, it is the command over a resource which determines one's share in the national income distribution. More the resources at the disposal of an individual in the form of capital, land, education and skill, more will be one's earnings. But this phenomenon may result in unequal income distribution.

The resources or factor supplies in a market economy come from two sources personal and inherited. The personal income may vary on the ground of difference in education and skill acquired by the labor. The labor having more skill and specialized education will be able to get higher remunerations as compared with those which lack skill and training etc.

Now there is a question how some acquire better skills, while others remain deprived of it. It essentially pertains to the richness of one's parents and opportunities available to an individual. Rich and influential people enable their children to get higher education and skill. As a result, they are able to avail better chances and snatch major shares out of national income. On the other hand, the poor parents are unable to provide better and higher education to their off springs.
Anonymous Profile
Anonymous answered
Unequal distribution of income is a serious problem affecting most of the countries today. What are the implications for businesses operating or thinking about operating in an environment or thinking about operating in an environment where there is a large disparity between the rich and poor

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