abstract: 'The top 1 percent income share has more than doubled in the United

  States over the last 30 years, drawing much public attention in recent

  years. While other English-speaking countries have also experienced

  sharp increases in the top 1 percent income share, many high-income

  countries such as Japan, France, or Germany have seen much less increase

  in top income shares. Hence, the explanation cannot rely solely on

  forces common to advanced countries, such as the impact of new

  technologies and globalization on the supply and demand for skills.

  Moreover, the explanations have to accommodate the falls in top income

  shares earlier in the twentieth century experienced in virtually all

  high-income countries. We highlight four main factors. The first is the

  impact of tax policy, which has varied over time and differs across

  countries. Top tax rates have moved in the opposite direction from top

  income shares. The effects of top rate cuts can operate in conjunction

  with other mechanisms. The second factor is a richer view of the labor

  market, where we contrast the standard supply-side model with one where

  pay is determined by bargaining and the reactions to top rate cuts may

  lead simply to a redistribution of surplus. Indeed, top rate cuts may

  lead managerial energies to be diverted to increasing their remuneration

  at the expense of enterprise growth and employment. The third factor is

  capital income. Overall, private wealth (relative to income) has

  followed a U-shaped path over time, particularly in Europe, where

  inherited wealth is, in Europe if not in the United States, making a

  return. The fourth, little investigated, element is the correlation

  between earned income and capital income, which has substantially

  increased in recent decades in the United States.'
affiliation: 'Alvaredo, F (Corresponding Author), Univ Oxford Nuffield Coll, Oxford
  OX1 1NF, England.

  Alvaredo, Facundo; Atkinson, Anthony B., Univ Oxford Nuffield Coll, Oxford OX1 1NF,
  England.

  Alvaredo, Facundo, Dept Econ, Oxford, England.

  Alvaredo, Facundo, Consejo Nacl Invest Cient \& Tecn, Consejo Nacl Invest Cient
  \& Tecn, RA-1033 Buenos Aires, DF, Argentina.

  Atkinson, Anthony B., London Sch Econ, London WC2A 2AE, England.

  Piketty, Thomas, Paris Sch Econ, Paris, France.

  Saez, Emmanuel, Univ Calif Berkeley, Berkeley, CA 94720 USA.'
author: Alvaredo, Facundo and Atkinson, Anthony B. and Piketty, Thomas and Saez, Emmanuel
author-email: 'alvaredo@gmail.com

  tony.atkinson@nuffield.ox.ac.uk

  piketty@ens.fr

  saez@econ.berkeley.edu'
author_list:
- family: Alvaredo
  given: Facundo
- family: Atkinson
  given: Anthony B.
- family: Piketty
  given: Thomas
- family: Saez
  given: Emmanuel
da: '2023-09-28'
doi: 10.1257/jep.27.3.3
eissn: 1944-7965
esi-highly-cited-paper: Y
esi-hot-paper: N
files: []
issn: 0895-3309
journal: JOURNAL OF ECONOMIC PERSPECTIVES
keywords-plus: INCOME INEQUALITY; LONG-RUN; TAX
language: English
month: SUM
number: '3'
number-of-cited-references: '34'
pages: 3-20
papis_id: b91dfc4117b50b79e83894640a656464
ref: Alvaredo2013top1
researcherid-numbers: MOTREB, ayoub EL/AAB-1710-2019
times-cited: '329'
title: The Top 1 Percent in International and Historical Perspective
type: Article
unique-id: WOS:000322902300001
usage-count-last-180-days: '9'
usage-count-since-2013: '151'
volume: '27'
web-of-science-categories: Economics
year: '2013'