The Comfortable, the Rich, and the Super-rich. What Really Happened to Top British Incomes During the First Half of the Twentieth Century?

Peter Scott and James Walker (j.t.walker@henley.ac.uk)
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Peter Scott: Henley Business School, University of Reading

John H Dunning Centre for International Business Discussion Papers from Henley Business School, University of Reading

Abstract: We examine shifts in British income inequality and their causes between 1911 and 1949. Newly re-discovered Inland Revenue 1911 estimates and more detailed data from subsequent official income distribution enquiries are used to show that income was substantially more concentrated at the top of the income distribution in 1911 than previous estimates suggest, and that the top 1 per cent were the principal 'losers' in the subsequent trend towards reduced income inequality. We find that this trend reflected a sharp decline in top 'unearned' incomes - paralleling the findings of Piketty and Saez for France and the USA. This explains the paradox between the observed reduction in British income inequality and the lack of evidence for any substantial redistribution of income between salary and wage-earners.

Keywords: Income inequality; United Kingdom (search for similar items in EconPapers)
JEL-codes: E21 H26 H87 (search for similar items in EconPapers)
Date: 2018-10
New Economics Papers: this item is included in nep-his, nep-ltv and nep-mac
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:rdg:jhdxdp:jhd-dp2018-07

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