ABSTRACT
The theory of the distribution of income can be divided into two major fields. The first is called the functional distribution of income and the second the personal distribution of income. The first is concerned with defining the shares of the different production factors of the national income. In other words, this field defines the wage rates, salaries, and rates of profit. The second field deals with the study of the distribution of income among individuals or families, the differentials in distribution among them, and the reasons behind these differentials.
