Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/209543
Authors: 
Fix, Blair
Year of Publication: 
2019
Series/Report no.: 
Working Papers on Capital as Power 2019/02 (v.2)
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.
Subjects: 
hierarchy
power
functional income distribution
personal income distribution
inequality
capital as power
class
JEL: 
D31
D33
B5
URL of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/
Document Type: 
Working Paper

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