ABSTRACT

This chapter explains the difference in income distribution among industries in terms of other labour force characteristics. Among the employment characteristics considered, industrial affiliation serves as a key to understanding the trend in income distribution. Our knowledge of how the host of socio-economic variables works together in affecting income distribution will enable us to assess at least the direction of change in inequality between 1961 and 1971, on the basis of data available for 1961 on the distribution of the labour force. To explain income distribution, it is useful to compare the structure of employment status for manufacturing with that for commerce. Even if all industries have the same sex ratio in their labour force, essentially the same pattern of relative income and income disparity would remain. The location and dispersion of income distribution is related to household size. An understanding of these inter-relations and interactions is needed to relate our empirical findings to some existing theories of household behaviour.