Identify the key determinants of income differences across individuals and discuss theories of the desired income distribution.

Income isn't similarly dispersed in a country. Some are rich and some are poor. Yet, the issue emerges when the pay distinction between the rich and the unfortunate increments to a bigger degree.

Economic growth and development- when a nation encounters a high financial development rate, it is a sign of low pay imbalance.

Per capita GDP- In the lengthy run, high GDP per capita is related to low pay imbalance, however, the case is inverse in the short run, where it is associated with higher pay disparity.

Natural Resources- big-league salary imbalance is related to nations that have an enormous measure of regular assets, for example, oil and products. This can be because of the explanation that responsibility for assets is bound to a little gathering.

International trade - It can be seen that high worldwide exchange trade diminishes the issue of inconsistent dissemination of pay, as it is connected with lower levels of pay imbalance.