@techreport{deVries2020Capital,
abstract = {We estimate capital and labor income Pareto exponents across 348 country-year observations that span 51 countries over half a century. We document two stylized facts: (i) capital income is more unequally distributed than labor income; namely, the capital exponent (1-3) is smaller than labor (2-5), and (ii) capital and labor exponents are nearly uncorrelated. To explain these findings, we build an incomplete market model with job ladders and capital income risk that gives rise to a capital income Pareto exponent smaller than but nearly unrelated to the labor exponent. Our results suggest the importance of distinguishing income and wealth inequality.},
address = {Luxembourg},
author = {Tjeerd de Vries and Alexis Akira Toda},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {C46; D15; D31; D52; 330; income fluctuation problem; inequality; power law},
language = {eng},
number = {794},
publisher = {Luxembourg Income Study (LIS)},
title = {Capital and labor income Pareto exponents across time and space},
type = {LIS Working Paper Series},
url = {http://hdl.handle.net/10419/228345},
year = {2020}
}