Inequality Atkinson, Anthony B
2015, 2015-05-11, 2015-03-20
eBook
Inequality and poverty have returned with a vengeance in recent decades. To reduce them, we need fresh ideas that move beyond taxes on the wealthy. Anthony B. Atkinson offers ambitious new policies ...in technology, employment, social security, sharing of capital, and taxation, and he defends them against the common arguments and excuses for inaction.
This book is about how much people earn and why the distribution of earnings has been changing over time. The gap between the top and bottom in the United States has widened significantly since 1980. ...Why has this happened? Is it due to new technologies? What is the role of globalisation? Are there historical precedents? The book begins with the "race" between technology and education, and shows that continuing technical progress does not necessarily imply a continuing rise in dispersion. It then examines the experience of 20 OECD countries over the twentieth century, material presented in the form of 20 country case studies. The book breaks new ground in assembling data on the distribution of individual earnings covering much of the twentieth century and drawing on a variety of under-exploited sources. The findings overturn a number of widely-held beliefs. It is not the earnings of the low paid that have been most affected by the recent changes; widening is largely due to what is happening at the top. The recent rise in earnings dispersion is not unprecedented, but should be seen as part of a longer-run history of successive compression and expansion of earnings differences. Available in OSO: http://www.oxfordscholarship.com/oso/public/content/economicsfinance/9780199532438/toc.html
Top Incomes in the Long Run of History Atkinson, Anthony B.; Piketty, Thomas; Saez, Emmanuel
Journal of economic literature,
03/2011, Volume:
49, Issue:
1
Journal Article
Peer reviewed
Open access
A recent literature has constructed top income shares time series over the long run for more than twenty countries using income tax statistics. Top incomes represent a small share of the population ...but a very significant share of total income and total taxes paid. Hence, aggregate economic growth per capita and Gini inequality indexes are sensitive to excluding or including top incomes. We discuss the estimation methods and issues that arise when constructing top income share series, including income definition and comparability over time and across countries, tax avoidance, and tax evasion. We provide a summary of the key empirical findings. Most countries experience a dramatic drop in top income shares in the first part of the twentieth century in general due to shocks to top capital incomes during the wars and depression shocks. Top income shares do not recover in the immediate postwar decades. However, over the last thirty years, top income shares have increased substantially in English speaking countries and in India and China but not in continental European countries or Japan. This increase is due in part to an unprecedented surge in top wage incomes. As a result, wage income comprises a larger fraction of top incomes than in the past. Finally, we discuss the theoretical and empirical models that have been proposed to account for the facts and the main questions that remain open.
The top 1 percent income share has more than doubled in the United States over the last 30 years, drawing much public attention in recent years. While other English-speaking countries have also ...experienced sharp increases in the top 1 percent income share, many high-income countries such as Japan, France, or Germany have seen much less increase in top income shares. Hence, the explanation cannot rely solely on forces common to advanced countries, such as the impact of new technologies and globalization on the supply and demand for skills. Moreover, the explanations have to accommodate the falls in top income shares earlier in the twentieth century experienced in virtually all high-income countries. We highlight four main factors. The first is the impact of tax policy, which has varied over time and differs across countries. Top tax rates have moved in the opposite direction from top income shares. The effects of top rate cuts can operate in conjunction with other mechanisms. The second factor is a richer view of the labor market, where we contrast the standard supply-side model with one where pay is determined by bargaining and the reactions to top rate cuts may lead simply to a redistribution of surplus. Indeed, top rate cuts may lead managerial energies to be diverted to increasing their remuneration at the expense of enterprise growth and employment. The third factor is capital income. Overall, private wealth (relative to income) has followed a U-shaped path over time, particularly in Europe, where inherited wealth is, in Europe if not in the United States, making a return. The fourth, little investigated, element is the correlation between earned income and capital income, which has substantially increased in recent decades in the United States. PUBLICATION ABSTRACT
Recent research highlighted controversy about the evolution of concentration of personal wealth. In this paper we provide new evidence about the long-run evolution of top wealth shares for the United ...Kingdom. The new series covers a long period – from 1895 to the present – and has a different point of departure from the previous literature: we start with the analysis of the distribution of estates left at death. We find that the application to the estate data of mortality multipliers to yield estimates of wealth among the living does not substantially change the degree of concentration over much of the period both in the UK and US, allowing inferences to be made for years when this method cannot be applied. The results show that wealth concentration in the UK remained relatively constant during the first wave of globalization, but then decreased dramatically in the period from 1914 to 1979. The UK went from being more unequal in terms of wealth than the US to being less unequal. However, the decline in UK wealth concentration came to an end around 1980, and since then there is evidence of an increase in top shares, notably in the distribution of wealth excluding housing in recent years. We investigate the triangulating evidence provided by data on capital income concentration and on reported super fortunes.
This paper finds that capital and labor incomes in the United States have become more closely associated since the 1980s. This has contributed to the well-known increase in the top 1% share of total ...income, exacerbating rising inequality in capital incomes and earnings. We show that the trend in the association is U-shaped as the recent increase contrasts with a tendency toward a weakening association until the 1980s. The paper, using data derived from tax records, studies the asymmetries in the association and tests for robustness to alternative income definitions, including the role of income from closely held businesses at the top.
Exposure to ambient fine particulate matter (PM2.5) is a major global health concern. Quantitative estimates of attributable mortality are based on disease-specific hazard ratio models that ...incorporate risk information from multiple PM2.5 sources (outdoor and indoor air pollution from use of solid fuels and secondhand and active smoking), requiring assumptions about equivalent exposure and toxicity. We relax these contentious assumptions by constructing a PM2.5-mortality hazard ratio function based only on cohort studies of outdoor air pollution that covers the global exposure range. We modeled the shape of the association between PM2.5 and nonaccidental mortality using data from 41 cohorts from 16 countries—the Global Exposure Mortality Model (GEMM). We then constructed GEMMs for five specific causes of death examined by the global burden of disease (GBD). The GEMM predicts 8.9 million 95% confidence interval (CI): 7.5–10.3 deaths in 2015, a figure 30% larger than that predicted by the sum of deaths among the five specific causes (6.9; 95% CI: 4.9–8.5) and 120% larger than the risk function used in the GBD (4.0; 95% CI: 3.3–4.8). Differences between the GEMM and GBD risk functions are larger for a 20% reduction in concentrations, with the GEMM predicting 220% higher excess deaths. These results suggest that PM2.5 exposure may be related to additional causes of death than the five considered by the GBD and that incorporation of risk information from other, nonoutdoor, particle sources leads to underestimation of disease burden, especially at higher concentrations.
Most evidence on the long-run evolution of income inequality is restricted to top income shares. While this evidence is relevant and important for studying the concentration of economic power, it is ...incomplete as an informational basis for analysing inequality in the income distribution as a whole. This paper proposes a non-parametric approach for estimating inequality in the overall distribution of income on the basis of tabular data from different sources, some in a highly aggregated form. The proposed approach is applied to Norway, for which rich historical data exist. We find evidence of very high income inequality from the late nineteenth century until the eve of World War II, followed by a rapid equalization until the 1950s. Income inequality remained low during the post-war period but has increased steadily since the 1980s. Estimates of a measure of affluence demonstrate that overall inequality has largely been governed by changes in the top half of the distribution and in the ratio between the mean incomes of the lower and upper halves of the population.
•We propose a non-parametric method for estimating long-run inequality based on mixed historical tabular data.•Application of the method for Norway shows very high income inequality from the late 1800 until the eve of World War II.•The evolution is governed by changes in the distribution of the top half and in the income share of the bottom half.
Top incomes and the gender divide Atkinson, Anthony B.; Casarico, Alessandra; Voitchovsky, Sarah
Journal of economic inequality,
06/2018, Volume:
16, Issue:
2
Journal Article
Peer reviewed
Open access
In the recent research on top incomes, there has been little discussion of gender. A great deal is known about gender differentials in earnings, but how far does this carry over to total incomes? ...This paper investigates the gender divide at the top of the income distribution using tax record data for eight countries with individual taxation. It shows that women are strongly under-represented at the top of the distribution. Although the presence of women at the top has increased over time, the rise becomes smaller at the very top. The income gradient by gender has become more marked. The paper also shows that income composition differs by gender and exhibits significant changes over time, underlining the fact that it is not sufficient to look only at earned income.
Consideration of world inequality should cause reexamination of the key concepts underlying the welfare approach to measuring income inequality and its relation to measuring poverty. This ...reexamination leads to exploration of a new measure that allows poverty and inequality to be considered in the same framework, incorporates different approaches to measuring inequality, and allows varied expressions of the cost of inequality. Applied to the world distribution of income for 1820–1992, the new measure provides different perspectives on the evolution of global inequality.
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