Capabilities, Allocation and Earnings

1. 1 INTRODUCTION The final chapter of my Personal Income Distribution, a Hulticapability Theory (Hartog, 1981a) carried as its motto: 'Oh richness of the unfinished'. It concluded a book in which labor services were decomposed into services arising from different capabilities. Individuals were supposed to command sks of capabilities and to decide on the utilization rates of these capabilities, by balanc­ ing efforts and rewards. The optimal capability bundle they so defined was to be reali...