The Size Distribution of Labour Incomes Derived from the Distribution of Aptitudes
This article owes its inspiration to one of Tinbergen’s most original contributions to economic theory , in which he endeavours to derive the distribution of labour incomes from the choice of occupation by individuals. This is also the aim of the present paper, which, however, uses somewhat different techniques of analysis and has a more limited scope. Whereas Tinbergen relied heavily of the differential calculus, I use mostly linear inequalities and integration in order to take account of the fact that most individuals have only one job at a time and to permit analysis of what has become known as a ‘continuum of traders’. Unlike Tinbergen, moreover, I shall not consider individuals’ non-monetary preferences concerning different types of work.
KeywordsIncome Distribution Labour Income Pareto Distribution Lorenz Curve True Generalisation
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