Income Composition Inequality

Marco Ranaldi

Review of Income and Wealth, 2022, vol. 68, issue 1, 139-160

Abstract: The purpose of this paper is twofold. First, it introduces a novel inequality concept called income composition inequality, which describes how the composition of income in two sources, such as capital and labor income, varies across the income distribution. Second, it constructs an indicator for its measurement. This paper argues that the study of income composition inequality allows for: (i) a novel political economy analysis of the evolution of economic systems; and (ii) the technical assessment of the relationship between the functional and personal distributions of income. Following an empirical application, this paper discusses possible avenues for future research on the matter, ranging from development issues to public finance.

Date: 2022
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https://doi.org/10.1111/roiw.12503

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Working Paper: Income Composition Inequality (2020)
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