income distribution

Examples of income distribution in the following topics:

• Income Distribution

  • The functional distribution of income describes the allocation of income among the factors of production.
  • The distribution of income among the members of society, individuals and families, is called the personal distribution of income.
  • The personal distribution of income describes the allocation of income among economic agents.
  • The income distribution is arrayed from lowest to highest.
  • There are many forces that influence income distribution.

• Income Distribution

  • While most social scientists see multiple tiers of income distribution within the bottom 99% of earners, the top 1% does hold a disproportionately high percentage of assets.
  • Unequal distribution of income between genders, races, and the population, in general, in the United States has been the frequent subject of study by scholars and institutions.
  • This graph illustrates the unequal distribution of income between groups with different levels of educational attainment.
  • Education is an indicator of class position, meaning that unequal distribution of income by education points to inequality between the classes.
  • Explain the development of income distribution in the US since the 1970's and what is meant by the "Great Divergence"

• Probability distributions

  • Table 2.5 shows the probability distribution for the sum of two dice.
  • Table 2.6 suggests three distributions for household income in the United States.
  • Probability distributions can also be summarized in a bar plot.
  • For instance, the distribution of US household incomes is shown in Figure 2.7 as a bar plot.
  • One of the three was said to be the actual distribution of US household incomes, so it must be (c).

• Statistical Literacy

  • They reported the mean household income and the median age of theatergoers.
  • It is likely that they wanted to emphasize that theatergoers had high income but de-emphasize how old they are.
  • The distributions of income and age of theatergoers probably have positive skew.
  • Therefore the mean is probably higher than the median, which results in higher income and lower age than if the median household income and mean age had been presented.

• Distribution of Wealth and Income

  • The distribution of wealth and income reveals inequalities among and within countries and the ways in which wealth is redistributed.
  • It differs from the income distribution in that it looks at the distribution of asset ownership in a society, rather than the current income of members of that society.
  • The Gini coefficient measures the amount of wealth or income inequality in a society by plotting the proportion of total income (or wealth) earned by the bottom x percent of the population.
  • In terms of distribution of income, a May 2011 report by the Organization for Economic Cooperation and Development (OECD) stated that the gap between rich and poor in OECD countries (most of which are "high income" economies) was at its highest level since the 1970s.
  • As with general wealth distribution, land is also distributed unequally.

• Personal Income

  • In the United States the most widely cited personal income statistics are the Bureau of Economic Analysis's (BEA) personal income and the Census Bureau's per capita money income.
  • BEA publishes disposable personal income, which measures the income available to households after paying federal and state and local government income taxes.
  • BEA produces monthly estimates of personal income for the nation, quarterly estimates of state personal income, and annual estimates of local-area personal income .
  • The Census Bureau also produces alternative estimates of income and poverty based on broadened definitions of income that include many of these income components that are not included in money income.
  • The Census Bureau releases estimates of household money income as medians, percent distributions by income categories, and on a per capita basis.

• S-Corporations (S-Corps)

  • If for some reason, Bob (as the majority owner) was to decide not to distribute the money, both Bob and John would still owe taxes on their pro-rata allocation of business income, even though neither received any cash distribution.
  • To avoid this "phantom income" scenario, S corporations commonly use shareholder agreements that stipulate at least enough distribution must be made for shareholders to pay the taxes on their distributive shares.
  • Quarterly estimated taxes must be paid by the individual to avoid tax penalties, even if this income is "phantom income".
  • However, in the manner of a partnership, an S corporation's income, deductions, and tax credits flow through annually to shareholders, regardless of whether distributions are made.
  • Thus, income is taxed at the shareholder level and not at the corporate level, and payments are distributed to S shareholders tax-free to the extent that the distributed earnings were not previously taxed.

• Net Income

  • Net income in accounting is an entity's income minus expenses for an accounting period.
  • Net income in accounting is an entity's income minus expenses for an accounting period.
  • Often, the term income is substituted for net income, yet this is not preferred due to the possible ambiguity.
  • Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings.
  • Often, the term "income" is substituted for net income, yet this is not preferred due to the possible ambiguity.

• Other Comprehensive Income

  • Accumulated Other Comprehensive Income (AOCI) is all the changes in equity other than transactions from owners and distributions to owners.
  • Other comprehensive income, disclosed in the stockholder's equity section, is the total non-owner change in equity for a reporting period or all the changes in equity other than transactions from owners and distributions to owners.
  • The individual components of the balance can be presented in a separate statement of comprehensive income or a separate section for comprehensive income within the income statement.
  • Some IFRSs (international financial reporting standards) require or permit that some components be excluded from the income statement and instead be included in other comprehensive income.
  • Other comprehensive income can be reported in its own statement of comprehensive income or in a separate section within the income statement.

• Income

  • Census Bureau data on household incomes is used to inform welfare policy, as benefits are distributed based on expectations about what income is needed to access basic resources like food and healthcare.
  • Salary alone only measures the income from a person's occupation, while total personal income accounts for investments, inheritance, real estate gains, and other sources of wealth.
  • However, in a dual-income household the combined income of both earners, even if they hold relatively low status jobs, can put the household in the upper middle class income bracket.
  • In the United States, the most widely cited personal income statistics are the Bureau of Economic Analysis's personal income and the Census Bureau's per capita money income.
  • The Census Bureau also produces alternative estimates of income and poverty based on broadened definitions of income that include many components that are not included in money income.