Holding all other factors constant, income earned from capital is more unequally distributed than income earned from labor.

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Quizplus · Accepted Answer

This is because capital income is typically earned by those who own assets, such as stocks or real estate, while labor income is earned by those who work for wages or salaries. Asset ownership is more concentrated among the wealthiest individuals, whereas wages and salaries are earned by a wider range of individuals. Therefore, capital income tends to be more unequally distributed than labor income.

Holding All Other Factors Constant, Income Earned from Capital Is