The Determinants of Distribution of the National Income

IN THE PRESENT PAPER we try to investigate both statistically and analytically the problem of the relative share of manual labour in the national income. There are two reasons why we do not consider the total share of labour, although it would be more interesting from the social point of view: (1) The statistics of national income include in the salaries the incomes of directors, managers, etc., which should rather be placed under the heading of profits. In this way what statistics give as the total share of labour does not represent correctly the distribution of the product of industry between profits and interest on the one hand, and wages and salaries on the other. (2) The relative share of manual labour in the national income is more suitable for theoretical