2. Literature Review

Abstract

The issue of increasing personal income inequality, in particular earnings inequality, has attracted a significant amount of research. In contrast, changes in functional income distribution, i.e. the fall in the share of wages in GDP have only recently been the subject of research with an aim to pin down the effects of technology, globalization, and changes in the bargaining power of labour. Different economic schools of thought developed distinct starting points for their analysis of functional income distribution.