Journal
ECONOMIC JOURNAL
Volume 117, Issue 524, Pages F619-F633Publisher
OXFORD UNIV PRESS
DOI: 10.1111/j.1468-0297.2007.02099.x
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In recent years, researchers have used taxation statistics to estimate the share of total income held by the richest groups, such as the top 10% or the top 1%. Compiling a standardised top income shares dataset for 13 developed countries, I find that there is a strong and significant relationship between top income shares and broader inequality measures, such as the Gini coefficient. This suggests that panel data on top income shares may be a useful substitute for other measures of inequality over periods when alternative income distribution measures are of low quality, or unavailable.
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