How the Rich Are Different: Hierarchical Power as the Basis of Income Size and Class

Blair Fix
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Blair Fix: York University

No t8muy, SocArXiv from Center for Open Science

Abstract: This paper investigates a new approach to understanding personal and functional income distribution. I propose that hierarchical power --- the command of subordinates in a hierarchy --- is what distinguishes the rich from the poor and capitalists from workers. Specifically, I hypothesize that individual income increases with hierarchical power, as does the share of individual income earned from capitalist sources. I test this idea using evidence from US CEOs, as well as a numerical model that extrapolates the CEO data. The results indicate that income tends to increase with hierarchical power, as does the capitalist composition of income. This suggests that hierarchical power may be a determinant of both personal and functional income.

Date: 2019-04-11
New Economics Papers: this item is included in nep-hme
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:t8muy

DOI: 10.31219/osf.io/t8muy

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