Friday, November 11, 2011

Reasons of Inequility of Income Distribution.?

You earn because someone else finds what you are able to do for them valuable. People's abilities are not distributed equally; therefore, neither will be their compensation. If you play basketball, your ability to score might be positively correlated to your height. Therefore people at the upper end of the height distribution will be able to earn hugely more than those of average height -- or even above average height.

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