INTERSECTORAL RELATIONS OF PERSONAL INCOMES (IN YUGOSLAVIA)
INTERSECTORAL RELATIONS OF PERSONAL INCOMES (IN YUGOSLAVIA)

Summary/Abstract: The great differences between the personal incomes of workers with the same qualifications employed in various sectors of the economy lead to a general rise in personal incomes in excess of the rate of labor productivity, and stimulate inflationary tendencies. Besides other negative effects, inflation makes social differences still greater because it effects most the workers with fixed incomes and those in the lowest income bracket. Furthermore, the increase in personal incomes stimulated by these differences means a decrease in the rate of accumulation (capital formation) and has adverse effect on employment opportunities. In addition, too great differentations in the personal incomes of workers with the same qualifications but employed in different sectors are not in line with the principle of income distribution according to work performed.

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