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Immigration and the top 1 percent

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  • Advani, Arun
  • Koenig, Felix
  • Pessina, Lorenzo
  • Summers, Andy

Abstract

We study the contribution of migrants to the rise in UK top incomes. Using administrative data on the universe of UK taxpayers, we show migrants are over-represented at the top of the income distribution, with migrants twice as prevalent in the top 0.01% as anywhere in the bottom 97%. These high incomes are predominantly from labour, rather than capital, and migrants are concentrated in only a handful of industries, predominantly finance. Almost all (90%) of the observed growth in the UK top 1% income share over the past 20 years has accrued to migrants.

Suggested Citation

  • Advani, Arun & Koenig, Felix & Pessina, Lorenzo & Summers, Andy, 2022. "Immigration and the top 1 percent," ZEW Discussion Papers 22-061, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:22061
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    References listed on IDEAS

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    1. Philippe Aghion & Ufuk Akcigit & Antonin Bergeaud & Richard Blundell & David Hemous, 2019. "Innovation and Top Income Inequality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 1-45.
    2. Facundo Alvaredo, 2017. "UK Estimates of Top Income Shares 2013-2014 and 2014-2015," Technical Notes 201702, World Inequality Lab.
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