Economic systems impact income distribution from "summary" of Comparative Economic Systems by Richard L. Carson
The way in which an economy is structured has a significant impact on how income is distributed among individuals in society. Different economic systems have varying mechanisms for determining who receives what share of the total income generated by the economy. In a market economy, income distribution is largely determined by the forces of supply and demand, with individuals earning income based on the value of their labor or the goods and services they provide. Those who are able to offer skills or products that are in high demand will typically earn higher incomes than those whose skills or products are in lower demand.
Conversely, in a centrally planned economy, income distribution is often more equalized, with the government playing a more active role in determining how income is allocated among individuals. The governme...
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