Personal Income Distribution

1 Introduction.- 1.1 The Problem.- 1.2 Some Facts.- 1.3 Different Jobs, Different People.- 1.4 Related Approaches.- 1.5 Human Capital Theory.- 1.6 Capabilities.- 1.7 Outline of the Book.- 2 Individual Labor Supply.- 2.1 The Basic Model.- 2.1.1 General Formulation.- 2.1.2 Specific Formulation.- 2.1.3 Some Implications of the Basic Model.- 2.2 Occupational Careers.- 2.3 Capability Development.- 2.4 A Life-Cycle Labor Supply Model.- 2.5 Evaluating Comments.- 3 Labor Demand.- 3.1 The Production Function.- 3.2 Equilibrium of the Firm.- 3.3 Some Comments.- 3.4 Price Changes.- 3.5 Evaluating Comments.- 4 Market Equilibrium.- 4.1 Divisibility.- 4.2 Divisibility and Equilibrium.- 4.3 Comparative Statics.- 4.3.1 A Single Market.- 4.3.2 A Multimarket System.- 5 The Income Density Function.- 5.1 The Earnings Function.- 5.2 Optimal Efforts.- 5.3 Age Distribution and Income Distribution.- 5.4 Income Distribution and Income Tax Rate Changes.- 5.5 Concluding Remarks.- 6 A Two-Capability Illustration.- 6.1 Labor Supply.- 6.2 Labor Demand.- 6.3 The Distribution of Income.- 6.4 The Distribution of Job Wage Rates.- 6.5 Effects of Income Tax Rate Changes.- 6.6 Concluding Remarks.- 7 On Testing.- 7.1 Main Hypotheses and Their Testing.- 7.2 Capabilities as Operational Variables.- 7.3 The Distinction between Capability Stocks and Capability Supply.- 7.4 Capabilities and Wages.- 7.5 Capability Development.- 7.6 Concluding Remarks.- 8 Measurement and Testing on American Data.- 8.1 The Data.- 8.1.1 Description.- 8.1.2 Some Qualifications.- 8.2 Reconnaissance: The 1970 Census Data.- 8.2.1 Data.- 8.2.2 Explaining Income.- 8.2.3 Factor Analysis.- 8.2.4 Conclusions.- 8.3 Further Analysis: The 1950 and 1960 Census Data.- 8.3.1 Data.- 8.3.2 Income Distribution by Capability Level.- 8.3.3 Factor Analysis.- 8.3.4 Explaining Income Differentials.- 8.3.5 Conclusions.- 9 Evaluation and Expansion.- Appendixes.- 2 The Labor Demand Model.- 3 Properties of Transformations.- 4 Effects of Tax Rate Changes.- 5 Explanation of DOT Variables.- 6 The 1970 Census Data Set.- 7 Distribution of Jobs by Capability Level.- 8. Selection of Regression Results: 1950-1960 Census Data.- Notes.- References.- List of Symbols.- Name Index.