Question

definition of distribution and redistribution of income

Answer 1

The distribution of income can be defined as a statistical measure of how many individuals receive or earn various amounts of income.

In the recent years the inequality has increased in both developing and developed nations. With an aim at levelling the distribution of income or wealth in a society the government uses the redistribution tool to reduce the growing inequality of wealth. Redistribution can be defined as quantified tool to decrease the market wealth and income inequality achieved through the personal income taxes, cash transfers, employees’ social security contributions, and on the basis of household-level micro data.