Predistribution

Part of speech: noun

Definitions

1. Economic arrangements that shape how income and wealth are distributed in a market before taxes and benefits are applied
2. The advance allocation of earnings through rules and institutions that determine pay and ownership prior to redistribution by the state
3. Market-level structuring of returns to labour and capital before any government tax or transfer adjusts the final outcome

Etymology: "Predistribution" is a compound formed from the prefix "pre-", meaning "before", and "distribution", so the word names the distribution of income that happens before the state steps in. In economics, it refers to how market forces divide income among people before taxes, transfers and benefits are applied. The distinction matters because the term is usually set against redistribution, which describes what governments do afterwards through taxes and welfare payments. Using "pre-" frames market income as a starting point rather than a natural or final outcome, which is the point its users often want to make.