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The functional distribution of income shows the breakdown of the various sources of income by type of resource ownership. Empirical data shows that the combination of salaries and proprietor's income (that is human resource ownership) combine for over 80% of total income. Profits, rent and interest account for the remaining 20%.
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The functional distribution of income is very similar for most countries of the world: over 3/4 of income is derived from work. |
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