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Homoploutia: Top Labor and Capital Incomes in the United States, 1950–2020

Author

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  • Yonatan Berman
  • Branko Milanovic

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.

Suggested Citation

  • Yonatan Berman & Branko Milanovic, 2024. "Homoploutia: Top Labor and Capital Incomes in the United States, 1950–2020," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 70(3), pages 766-784, September.
    • Handle: RePEc:bla:revinw:v:70:y:2024:i:3:p:766-784
    DOI: 10.1111/roiw.12659
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    4. David Gallusser & Matthias Krapf, 2022. "Joint Income-Wealth Inequality: Evidence from Lucerne Tax Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 251-295, August.
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    10. Artola Blanco, Miguel & Gómez-Blanco, Victor Manuel, 2025. "Reassessing the great compression among top earners: The overlooked role of taxation and self-employment," Explorations in Economic History, Elsevier, vol. 96(C).
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    14. Rachel Ong ViforJ & William A.V. Clark & Susan J. Smith & Gavin A. Wood & William Lisowski & N.T. Khuong Truong & Melek Cigdem, 2021. "Tenure transitions at the edges of ownership: Reinforcing or challenging the status quo?," Environment and Planning A, , vol. 53(8), pages 1993-2011, November.
    15. Teng, Xingan, 2025. "Left-Wing Political Strength, Inclusive Institutions, and the Evolution of Capitalist Systems," MPRA Paper 126506, University Library of Munich, Germany.
    16. Ranaldi, Marco, 2025. "Global Distributions of Capital and Labor Incomes," World Development, Elsevier, vol. 188(C).
    17. Ranaldi, Marco & Milanović, Branko, 2022. "Capitalist systems and income inequality," Journal of Comparative Economics, Elsevier, vol. 50(1), pages 20-32.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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