How Closely Do Top Income Shares Track Other Measures of Inequality?

Andrew Leigh

242 citations0/0 files storedThe Economic Journal

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Income, Poverty, and Inequality Labor market dynamics and wage inequality Economic Theory and Policy

Abstract

In recent years, researchers have used taxation statistics to estimate the share of total income held by the richest groups, such as the top 10% or the top 1%. Compiling a standardised top income shares dataset for 13 developed countries, I find that there is a strong and significant relationship between top income shares and broader inequality measures, such as the Gini coefficient. This suggests that panel data on top income shares may be a useful substitute for other measures of inequality over periods when alternative income distribution measures are of low quality, or unavailable.

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2019Economic Growth and Income Inequality 2003Ethnicity, Insurgency, and Civil War 2003Income Inequality in the United States, 1913-1998 1996A New Data Set Measuring Income Inequality 2018Economic growth and income inequality (2000-15)2001Promise and Pitfalls in the Use of “Secondary” Data-Sets: Income Inequality in OECD Countries as a Case Study 2006The Evolution of Top Incomes: A Historical and International Perspective 2003Income Inequality in France, 1901–1998

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2014Long-Run Trends in the Distribution of Income and Wealth 2011Recent Trends in Top Income Shares in the United States: Reconciling Estimates from March CPS and IRS Tax Return Data 2014Recent Trends in Inequality and Poverty in Developing Countries 2009Top Incomes in the Long Run of History 2014The One Percent 2015The effects of economic growth on income inequality in the US

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