MODULE 73
Theories of Income Distribution
720
In this Module, you will learn to:
Explain the labor market applications of the marginal productivity theory of income distribution
Identify and describe sources of wage disparities and the role of discrimination
In Module 70, we introduced the factor distribution of income and explained how the marginal productivity theory of income distribution helps to explain how income is divided among factors of production in an economy. We also considered how the markets for factors of production are broken down. There are different markets for different types of factors. For example, there are different labor markets for different types of labor, such as for computer programmers, pastry chefs, and economists. In this module, we look more closely at the marginal productivity theory of income distribution and the extent to which it explains wage disparities between workers.