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Unformatted text preview: 8% -6.5% 57% 16.1% 61.8% 6.8% 65% -17.4% -36.3% -11.6% 49% 1.7% 11.2% -0.4% 121% Computations based on family market income including realized capital gains (before individual taxes). Incomes exclude government transfers (such as unemployment insurance and social security) and non-taxable fringe benefits. Incomes are deflated using the Consumer Price Index. Column (4) reports the fraction of total real family income growth (or loss) captured by the top 1%. For example, from 2002 to 2007, average real family incomes grew by 16.1% but 65% of that growth accrued to the top 1% while only 35% of that growth accrued to the bottom 99% of US families. Source: Piketty and Saez (2003), series updated to 2011 in January 2013 using IRS preliminary tax statistics. 20% 15% 10% 5% Top 1% (incomes above $367,000 in 2011) Top 5-1% (incomes between $155,000 and $367,000) 2008 2003 1998 1993 1988 1983 1978 1973 1968 1963 1958 1953 1948 1943 1938 1933 1928 1923 0% 1918 Top 10-5% (incomes between $111,000 and $155,000) 1913 Share of total income accruing to each group 25% FIGURE 2 Decomposing the Top Decile US Income Share into 3 Groups, 1913-2011 Source: Table A3, cols. P90-95, P95-99, P99-100. Income is defined as market income including capital gains. Top 1% denotes the top percentile (families with annual income above $367,000 in 2011) Top 5-1% denotes the next 4% (families with annual income between $155,000 and $367,000 in 2011) Top 10-5% denotes the next 5% (bottom half of the top decile, families with annual income between $111,000 and $155,000 in 2011). Increases in top incomes in other countries too! But not all countries! Fortin – Econ 560 Lecture 0 0.2 Sources of Evidence: A. Traditionally Used Micro-Data Sets Censuses (Canada, since 1910, every five years since 1985, US decennial since 1840) Labour Force Survey (LFS) (Canada: since 1976, wages since 1997, US: Current Population Survey (CPS), from 1964); Survey of Consumer Finances (Canada, 1981-1997) Panel Data (Longitudinal) (Canada: SLID since 1993, US: PSID since late 1960s, NLSY79, NLSY97, etc. Specialized surveys (Educational Surveys, Canada: National Graduate Surveys, YITS, US: NELS, Early Childhood...
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This document was uploaded on 02/26/2014 for the course ECON 560 at The University of British Columbia.

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