A fair and equitable sharing of the
economic development of the country can be seen from the distribution of income
in the country. Distribution of income received by the people in a country are
intended to improve the level of people who are still living in poverty. The
distribution of income is also income distribution as a whole, in the narrow
sense of the different levels of income between households or decrease social
inequalities.
Income distribution according to
economic experts can distinguish among others:
1. The
distribution of personal income.
Individual
income distribution indicates the distribution of income received by
individuals in the community. The focus in this distribution model that is how
much revenue received by a person, do not see
techniques or ways by individuals and households to obtain its income, number
of household members who are looking for income to meet household needs or
whether the income derived from employment or other sources such as flowers,
gifts, royalties, gains or inheritance. The location and sector revenue sources
were also ignored.
2. Functional
income distribution.
Functional
income distribution describes the proportion of income received by each factor
of production. Each of the factors of production receive rewards in accordance
with the distribution of national production. Income distribution is based on
the owners of production factors related to the revenue growth. Revenue growth
in a society that is based on the ownership of production factors can be
grouped into two kinds:
a) Revenues for
the work in the form of wages or salary and the amount depends on the level of
productivity.
b) Income from
other sources such as rents, profits, royalties, interest, gift, or
inheritance.
Government programs in the framework of the distribution of income are generally divided in:
