ABSTRACT
Among the wide variety of distribution factors in economics, functional distribution and family income distribution are the two major ones. Functional distribution is the study of the division of income between income from labor and income from property, which is largely determined by the type and speed of economic growth. Family income distribution is the study of the division of income by dividing the income of families into size categories. It is the basis for the analysis of income distribution. When wage income is distributed more equally than property income, a change in the functional distribution favoring labor, indicated by a rise in the distributive share of wage income to total income, will always serve to improve income distribution. In fact, this relation establishes the necessary condition for the notion—usually accepted uncritically—that any change favoring labor's share in income necessarily improves income distribution.
