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In this paper, we consider cross-layer optimization in wireless networks with wireless broadcast advantage, focusing on the problem of distributed scheduling of broadcast links. The wireless broadcast advantage is most useful in multicast scenarios. As such, we include network coding in our design to exploit the throughput gain brought in by network coding for multicasting. We derive a subgradient algorithm for joint rate control, network coding and scheduling, which however requires centralized link scheduling. Under the primary interference model, link scheduling problem is equivalent to a maximum weighted hypergraph matching problem that is NP-complete. To solve the scheduling problem distributedly, locally greedy and randomized approximation algorithms are proposed and shown to have bounded worst-case performance. With random network coding, we obtain a fully distributed cross-layer design. Numerical results show promising throughput gain using the proposed algorithms, and surprisingly, in some cases even with less complexity than cross-layer design without broadcast advantage.