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/^
