Homoploutia: top labor and capital incomes in the United States, 1950–2020

Berman, Yonatan and Milanovic, Branko (2023) Homoploutia: top labor and capital incomes in the United States, 1950–2020. Review of Income and Wealth. ISSN 0034-6586

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Abstract

Homoploutia describes the situation in which the same people are rich in the space of capital and labor income. We combine survey and administrative data to document the evolution of homoploutia in the United States since 1950. In 1950, 10 percent of top decile capital-income earners were also in the top decile of labor income. Today, this indicator is 30 percent. This makes the traditional division to capitalists and laborers less relevant today. We find that the increase in homoploutia accounts for 20 percent of the increase in interpersonal income inequality since 1986.

Item Type:	Article
Official URL:	https://onlinelibrary.wiley.com/journal/14754991
Additional Information:	© 2023 The Authors
Divisions:	International Inequalities Institute
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HB Economic Theory
JEL classification:	D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions J - Labor and Demographic Economics > J0 - General > J01 - Labor Economics: General P - Economic Systems > P1 - Capitalist Systems > P16 - Political Economy
Date Deposited:	24 May 2024 14:42
Last Modified:	17 Nov 2024 02:51
URI:	http://eprints.lse.ac.uk/id/eprint/123639

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