http://worldcat.org/entity/work/id/29498537

Income and wealth

Income and wealth have long formed an important focus for economic research, with economists keen to answer the following kinds of question: Why do we pay people who work equally hard different levels of income? Why are some workers more motivated than others? How does the market economy provide jobs that meet the expectations of experienced workers? What is the relationship between economic growth and income distribution? Why do people save? Are there any market forces which restrain the tendency towards cumulation of wealth by individuals and enhancement of inequality over generations? In this book, Tsuneo Ishikawa systematically examines and evaluates the economic arguments arising from these questions with the overall aim of explaining how income and wealth are produced and distributed. Using empirical data from the US, the UK, and Japan, he examines both the neo-classical and labour market approaches to income and wealth distribution, assesses the circumstances in which each is most appropriate, and examines to what extent they can be integrated. Unusually, Ishikawa not only analyses income distribution as the consequence of economic activities, but also focuses on the process of obtaining income--especially on how the content of different jobs can influence employment and income distribution. In the real market economy, the tax system, social welfare, and the provision of public goods all contribute to income redistribution. Ishikawa acknowledges this, but argues that a correct understanding of how the labour market produces differences in income and wealth is vital for informed study of the issue of income redistribution. He suggests, furthermore, that a full understanding of income and wealth in developed market economies may be beneficial in dealing with problems of income distribution in developing economies, while drawing attention to the need for an international redistribution of income and wealth.

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