1. KRUGMAN'S MICROECONOMICS for AP* Theories of Income Distribution Margaret Ray and David Anderson Micro: Econ: 37 73 Module

2. What you will learn in this Module : Labor market applications of the marginal productivity theory of income distribution. Sources of wage disparities, including the role of discrimination.

3. The Marginal productivity Theory of Income Distribution According to MP theory, the division of income among factors of production is determined by MP Can we use MP theory to explain why some workers are paid more than others?

4. Marginal Productivity and Wage Inequality Compensating differentials Differences in talent Human capital

5. Other Sources of Wage inequality Market Power Efficiency Wages Discrimination

6. Is the MP Theory Really True? Objections to MP theory Evidence Fairness Does MP Theory work?