ABSTRACT

Economists have traditionally focused their attention more on the functional distribution of income related to the determination of factor prices and factor shares. While the family distribution of income has by no means been totally neglected, it is probably fair to say that it has been viewed more as a descriptive device and, until quite recently, not integrated with the main body of analytical economics. However, the real objective of distributive justice is more usefully conceived of as accelerating the development of poorer groups in society rather than in terms of relative share of factor incomes. A grouping of households according to the family income provides more insight into the nature of income distribution.