Increasing Capital Income Share and its Effect on Personal Income Inequality

Branko Milanovic

No 663, LIS Working papers from LIS Cross-National Data Center in Luxembourg

Abstract: Piketty's r>g implies an increase in capital-output ratio and in the share of capital income in net output. But it still does not guarantee the increase in personal income inequality. We derive the conditions for the ""pass-through"" of the rise in the share of capital income to greater personal income inequality. They have to do with the concentration of income from capital and its association with higher overall income. A key way to breaking the ""transmission"" into higher personal inequality is to diversify ownership of capital (""people's capitalism"").

Pages: 32 pages
Date: 2016-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published in After Piketty: The Agenda for Economics and Inequality, edited by Heather Boushey, J. Bradford DeLong, and Marshall Steinbaum, Chapter 10. Cambridge, Massachusetts: Harvard University Press, 2017.

Downloads: (external link)
http://www.lisdatacenter.org/wps/liswps/663.pdf (application/pdf)

Related works:
Working Paper: Increasing capital income share and its effect on personal income inequality (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lis:liswps:663

Access Statistics for this paper

More papers in LIS Working papers from LIS Cross-National Data Center in Luxembourg Contact information at EDIRC.
Bibliographic data for series maintained by Piotr Paradowski ().