Editing Income (section)

== Income growth ==
{{See also|List of countries by GNI per capita growth|Wage growth}}
[[Income per capita]] has been increasing steadily in most countries.<ref>[http://www.gapminder.org/world/#$majorMode=chart$is;shi=t;ly=2003;lb=f;il=t;fs=11;al=30;stl=t;st=t;nsl=t;se=t$wst;tts=C$ts;sp=5.59290322580644;ti=2007$zpv;v=0$inc_x;mmid=XCOORDS;iid=0AkBd6lyS3EmpdHo5S0J6ekhVOF9QaVhod05QSGV4T3c;by=ind$inc_y;mmid=YCOORDS;iid=rdCufG2vozTpKw7TBGbyoWw;by=ind$inc_s;uniValue=8.21;iid=phAwcNAVuyj0XOoBL_n5tAQ;by=ind$inc_c;uniValue=255;gid=CATID0;by=grp$map_x;scale=log;dataMin=58;dataMax=108111$map_y;scale=lin;dataMin=26;dataMax=56$map_s;sma=49;smi=2.65$cd;bd=0$inds= "Gapminder World"]. [[Gapminder Foundation]].</ref> Many factors contribute to people having a higher income, including [[education]],<ref>[http://www.gapminder.org/world/#$majorMode=chart$is;shi=t;ly=2003;lb=f;il=t;fs=11;al=30;stl=t;st=t;nsl=t;se=t$wst;tts=C$ts;sp=5.59290322580644;ti=2007$zpv;v=0$inc_x;mmid=XCOORDS;iid=0AkBd6lyS3EmpdHo5S0J6ekhVOF9QaVhod05QSGV4T3c;by=ind$inc_y;mmid=YCOORDS;iid=pyj6tScZqmEdrsBnj2ROXAg;by=ind$inc_s;uniValue=8.21;iid=phAwcNAVuyj0XOoBL_n5tAQ;by=ind$inc_c;uniValue=255;gid=CATID0;by=grp$map_x;scale=log;dataMin=58;dataMax=108111$map_y;scale=lin;dataMin=8.7;dataMax=100$map_s;sma=49;smi=2.65$cd;bd=0$inds= "Gapminder World"]. [[Gapminder Foundation]].</ref> [[globalisation]] and favorable political circumstances such as [[Index of Economic Freedom|economic freedom]] and [[peace]]. Increases in income also tend to lead to people choosing to work fewer [[working hours|hours]].
[[Developed countries]] (defined as countries with a "developed economy") have higher incomes as opposed to [[developing countries]] tending to have lower incomes.

=== Factors contributing to higher income ===
Education has a positive effect on the level of income.<ref>Mincer, J. (1974). Schooling, Experience, and Earnings. New York: National Bureau of Economic Research.</ref><ref>Card, D. (1999). "The Causal Effect of Education on Earnings." In: Ashenfelter, O. and Card, D. (eds.), Handbook of Labor Economics, Vol. 3.</ref><ref>Moretti, E. (2004). "Estimating the Social Return to Higher Education: Evidence from Longitudinal and Repeated Cross-Sectional Data." Journal of Econometrics</ref> Education increases the skills of the workforce, which in turn increases its productivity (and thus higher wages). Gary Becker developed a Human Capital Theory, which emphasizes that investment in education and training lead to efficiency gains, and by extension to economic growth.<ref>Becker, G. S. (1964). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. Columbia University Press.</ref>

Globalization can increase incomes by integrating markets, and allowing individuals greater possibilities of income increases through efficient allocation of resources and expanding existing wealth.

Generally, countries more open to trade have higher incomes.<ref>Dollar, D., & Kraay, A. (2004). Trade, Growth, and Poverty. The Economic Journal, 114(493), F22–F49. <nowiki>http://www.jstor.org/stable/3590109</nowiki></ref> And while globalization tends to increase average income in a country, it does so unequally.<ref>Goldberg, P. K., & Pavcnik, N. (2007). "Distributional effects of globalization in developing countries." Journal of Economic Literature, 45(1), 39-82.</ref> Sachs and Warner claim, that “countries with open economies will converge to the same level of income, although admittedly it will take a long time.”<ref>Sachs, J. D., & Warner, A. M. (1995). "Economic reform and the process of global integration." Brookings Papers on Economic Activity, 1995(1), 103.</ref>