Income Distribution: Line of Reasoning (Fassung 2)

Steindl, Josef

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Document type:: Works

Collection:: Josef Steindl Collection

Title:: Income Distribution: Line of Reasoning (Fassung 2)

Author:: Steindl, Josef

Scope:: Typoskript mit handschriftlichen Anmerkungen und Anstreichungen, 5 Seiten

Year of publication:: 1975

Source material date:: [15.08.1975]

Language:: English

Note:: Eine weitere Fassung dieses Typoskripts findet sich unter Signatur S/M.70.1. Zusatz zum Titel in Klammer fingiert.

Topic:: Stochastic processes and size distribution

JEL Classification:: D31 [Personal Income, Wealth, and Their Distributions]

Shelfmark:: S/M.70.2

DOI:: https://doi.org/10.48671/nls.js.AC14446213

M e accept o3 the general pattern of explanati a the interplay of the two systems* s grades, and payment for grade differentials* the potto a which w n s outlined at the start in connection with Chaiiioe nownoa theory. ' J 'Lis duality of ,rades cad differentials is preferable to that f demand and supply which is toe static and is bound t> lead us astray 7 . A n the case of earned income the grad© would bo we 1th, mid the different! 1 payments would be the return rates on different amounts of wealth. The Trade here defends indirectly on tinej in other cases - burocaetiw pattern - the grade depends directly on tine (promotion); in still other cases, the grade depends on the acquisition of knowledge or skill, and therefore ^again on tine. In many cases, however, the grades are provided by nautural gifts , as with the filn star, the sportsman, and probably also the manager;in all these cases learning! does play a very important role,too, but we could hardly expect a close correlation between the time of learning and.the grade here Rather, it would seem thet there is a natural distributi n of gifts ( not merely genetically , but also *ha duo to th influence of the milieu and childhood influences). This distribution would, most plausibly, bo rather skew, and that of the grades would therefore bo al3*> skew. Jo might asume that it would be exponential or geometrical ( theoretical reasons might be found in Conng e Palm^.t^xkdx G theory ). u hilo i the c- se ,f wealth he whole weight of the oxplan^ti n was put on the distribution of wealth, which moreover had alreddy all the required qualities which needed only to be shown t re or-> due e th tiselves in the income distribut : n, the weight of the yplan tory procedure in these other cases is shiftc entirely to the distributi n of the payment. This is very largely dependent , indicrectly, on orocosses of economic development evolving in time. The informa?ion space accessible to the owners of hi h grades gets larger ad larger, and with it grows the payment received y that grade. iTo must now argue from the distribution of payments condistional on grade, via the distribution of grades, to the distribution of payments among persons. A/^

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