Distribution of incomes and their types

The distribution of incomes throughout the whole of world history has been unequal and remains so today. This situation is due to a variety of circumstances, both objective and subjective.

To explain the reasons for this inequality, it is first of all necessary to understand what the revenues actually are. In the most ordinary sense, income is a certain amount of money received by a subject for any period. Moreover, the forms of income generation can be different - salary, fee, rent, interest, profit, various payments of transferability (social security benefits, unemployment, benefits for large families , etc.).

The income of the population, the parameters of their structure, the level, the degree of differentiation and sources of receipt are the most important indicators of the economic and social state of society and decisively influence the distribution of national income. Since incomes serve as the main source of satisfaction of needs, their consideration presupposes the correlation of this concept with a wider and more capacious content - the standard of living of the population, and the problem of income distribution is one of the central in economic science.

It is important to understand what the revenues are and what their structure is, what sources are the basis for their formation.

The concept of "income" is a complex economic category. This complexity is explained by the fact that it is extremely complex structured.

In science, under personal incomes, it is customary to consider the means received by an individual, which can be expressed in natural and monetary forms, and which serve to ensure a decent level of existence.

With the concept of "income distribution", the problem of social inequality is objectively interrelated , the source of which is inequality in their distribution.

One of the fundamental aspects of modern social policy, practically in any state, is positioning the state policy on income.

For individuals or households, incomes are classified into cash and in-kind. The first of these are the amounts of money that an individual receives to meet his life's needs.

The natural incomes are those that come to the individual as the results of agricultural activities, cattle breeding, as well as various works and services that are produced and consumed in kind.

Monetary income is the amount of money that comes to an individual over a certain period of time and serves as a means of paying for items that provide for his personal consumption.

For an accurate understanding of the nature of income, they are classified and defined by concepts: nominal, available and real.

Nominal - this is all income, the amount of which does not depend on the actions of the taxation system and the prevailing level of prices in the market.

The disposable is the same nominal income, only the amount of taxes paid and other obligatory payments are deducted from it.

Real income is the sum of the benefits that an individual can gain for the amount of disposable income.

In practice, income distribution is based on different approaches and theories. One of them is the theory of marginal productivity, which is simple enough: the more a person produces, the higher the income that he has as a reward for what he has produced.

However, the application of this approach is not always justified. This is because:

1. Imperfect competition does not always adequately reflect the amount of labor spent on the production of a particular type of goods.
2. Inequality in the distribution and redistribution of income is an objective factor in the development of society.
3. In every society, the number of incomes is always less than those who become their owners, and therefore the application of the principles of justice is extremely relative and limited.

Proceeding from this, it is required to include mechanisms of redistribution, which reconfigure the streams of income movement in accordance with the priorities of the society and its laws. Therefore, there are other mechanisms and varieties of the functioning of the distribution system. For example, the distribution of income between the various production factors available, acquires the properties of a functional distribution that forms and the corresponding revenues-rent, profit and various types of wages. They are called factorial or primary. They form secondary - which arise as a result of the redistributive system - pensions, benefits and other various transfer payments.

All incomes are the most important condition for the harmonious development of society and for ensuring social stability. A significant role in their formation and regulation should be played by the state, and its role within the framework of this function is constantly growing.