Factor Shares and Inequality in the UK
AbstractTrends in factor shares in both national and household income are estimated from the national accounts and compared to those derived from the FES household survey in order to obtain more reliable measures of the contribution of changes in factor shares to the contemporary growth in income inequality. The national accounts indicate that upward trends in the shares of investment-related and self-employment incomes have contributed directly to the rise in inequality during the past 20 years--though to a generally secondary extent until 1986 at least. The paper outlines the importance and the difficulty of including appropriate measures of capital gains and private benefit income in estimates of household investment-related income, whether the national accounts or household surveys are used for evidence, indicating the continuing value of national income shares as a guide to the longer-run implications of factor shares for inequality. Copyright 1996 by Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Review of Economic Policy.
Volume (Year): 12 (1996)
Issue (Month): 1 (Spring)
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- Schlenker, Eva & Schmid, Kai D., 2013.
"Capital income shares and income inequality in the European Union,"
FZID Discussion Papers
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- Eva Schlenker & Kai Daniel Schmid, 2013. "Capital Income Shares and Income Inequality in the European Union," IMK Working Paper 119-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
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- Adler, Martin & Schmid, Kai Daniel, 2012. "Factor shares and income inequality - Empirical evidence from Germany 2002 - 2008," University of Tuebingen Working Papers in Economics and Finance 34, University of Tuebingen, Faculty of Economics and Social Sciences.
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