Kaldor's income distribution theory

Kaldor's income distribution theory, proposed by economist Nicholas Kaldor, suggests that income distribution is influenced by factors like technology and capital accumulation rather than just labor productivity. Kaldor identified specific "stylized facts" about economies, such as the tendency for income to concentrate among the wealthy and the importance of capital in generating income. He argued that economic growth can lead to structural changes in income distribution, often favoring capital owners over workers. This theory highlights the complex interactions between economic growth, capital investment, and the resulting disparities in income distribution.