Topic > Overview and Importance of Income Distribution

The distribution of income in a given economy is known as the way in which income is distributed among households. This phenomenon should not be confused with wealth distribution which considers ownership of assets in an economy, as opposed to income. The topic of income distribution is a very hot topic due to perceived income inequality in the United States. It is talked about daily on almost every political talk show, news show, business news show, and the list goes on. The reason it is such a controversial topic is because the distribution of income in an economy affects every single person in that economy. There are many methods for collecting information, compiling it, and analyzing the data. There are also many ways to manipulate or influence the distribution of income, whether this is done naturally or deliberately to achieve a certain outcome. The analysis also provides information about how certain actions affect income distribution and can provide clues about how to prevent a large gap in income inequality or correct the gap. Sometimes data can provide clues as to whether or not regulations should be tightened or loosened in certain industries, and just like every other topic the government is involved in, there are many people who support government intervention, but there are even many people who oppose it. Each side presents compelling arguments to support its views. A general study of income distribution will help to better understand how decisions are made in an economy and will help prevent income inequality or close the gap between rich and poor. The income distribution is normally compiled and divided into five groups known as quintiles. The...... half of the article......scientificamerican.com/article/ask-gini/Morici, P. (January 20, 2014). What Obama doesn't understand about income inequality. Fox News. Retrieved May 12, 2014, from http://www.foxnews.com/opinion/2014/01/20/what-obama-doesnt-get-about-income-inequality/Ness, D. (2013, September 18). A bitter pill: New census data shows gender wage gap essentially unchanged since 2002. The Huffington Post. Retrieved May 12, 2014, from http://www.huffingtonpost.com/debra-l-ness/gender-based-wage-gap_b_3941580.htmlO'neill, J. (2013, April 9). Racial and gender wage gaps: Is discrimination still to blame?. AEIdee. Retrieved May 12, 2014, from http://www.aei-ideas.org/2013/04/race-and-gender-wage-gaps-discrimination-still-to-blame/Saving in 2005 Worst Since 1933. (2006, January 30). The New York Times. Retrieved May 10, 2014, from http://www.nytimes.com/2006/01/31/business/31econ.html?fta=y