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Pareto-Optimal Proportion Structure Criterion of Income Distribution

In: The 19th International Conference on Industrial Engineering and Engineering Management

Author

Listed:
  • Zhen He

    (Zhengzhou Institute of Aeronautical Industry Management)

Abstract

The two keys to whether the income distribution is reasonable are the distribution of active practice and the scientific judgment criterion. The current estimate criterion is almost based on their ‘own’ practices, which has no big guiding significance to the others. Based on Pareto optimality theory, this article gives the Pareto-optimal criterion for the proportion structure of income distribution: the Pareto-optimal theoretical criterion under fiver equal parts of the income strata with decreasing order is 60, 20, 11.7, 6.3, 2 %; the Pareto-optimal theoretical criterion of Gini Ratio or the concentration ratio is 0.57; the theoretical criterion of how the resource would be allocated and combined between the personal department and the public department should be 86.6:13.4 %. That criterion can judge whether the income distribution is reasonable and has the general guiding significance to the income distribution practice in the different countries and different regions.

Suggested Citation

  • Zhen He, 2013. "Pareto-Optimal Proportion Structure Criterion of Income Distribution," Springer Books, in: Ershi Qi & Jiang Shen & Runliang Dou (ed.), The 19th International Conference on Industrial Engineering and Engineering Management, edition 127, chapter 0, pages 105-111, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-38433-2_12
    DOI: 10.1007/978-3-642-38433-2_12
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