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

Andrew Leigh

No 562, CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, Australian National University

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 thirteen 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

Keywords: inequality; income distribution; top incomes; panel data (search for similar items in EconPapers)
JEL-codes: C23 D31 N30 (search for similar items in EconPapers)
Date: 2007-10
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Citations: View citations in EconPapers (193)

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Journal Article: How Closely Do Top Income Shares Track Other Measures of Inequality? (2007)
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