Income Distribution

Income distribution, the apportionment of total national income among all the individuals and families in a country, is an issue closely tied to the way business operates within a society. For any market economy, it is the business sector that generates the most personal income, not only through wages and benefits but also through interest, dividends, and stock appreciation. Therefore, the distribution of income is a central concern of business ethics for evaluating both the fairness of particular business practices and the overall contribution of business to the well-being of society. This entry discusses measuring income distribution, trends over time in the United States, reasons for unequal distribution of income, and the economic and ethical concerns of income inequality.