IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2304.09971.html
   My bibliography  Save this paper

The Pie: How Has Human Evolution Distributed Non-Financial Wealth?

Author

Listed:
  • Dave Costenaro

Abstract

Income and wealth allocation are foundational components of how economies operate. These are complex distributions, and it is hard to get a real sense for their dynamics using simplifications like average or median. One metric that characterizes such distributions better is the Gini Index, which on one extreme is 0, a completely equitable distribution, and on the other extreme is 1, the most inequitable, where a single individual has all the resources. Most experts agree that viable economies cannot exist at either extreme, but identifying a preferred range has historically been a matter of conflicting political philosophies and emotional appeals. This research explores instead whether there might be a theoretical and empirical basis for a preferred Gini Index. Specifically, I explore a simple question: Before financial systems existed, how were natural assets allocated? Intrinsic human attributes such as height, strength, & beauty were the original measures of value in which human social groups traded. Each of these attributes is distributed in a diverse and characteristic way, which I propose has gradually established the acceptable bounds of inequality through evolutionary psychology. I collect data for a wide array of such traits and calculate a Gini Index for them in a novel way assuming their magnitudes to be analogous to levels of financial wealth. The values fall into a surprisingly intuitive pattern ranging from Gini=0.02 to 0.51. Income distributions in many countries are within the top half of this range after taxes and transfers are applied (0.2 to 0.4). Wealth distributions on the other hand are mostly outside of this range, with the United States at a very inequitable 0.82. Additional research is needed on the interconnections between this range of "natural" Gini Indexes and human contentment; and whether any explicit policy goals should be considered to target them.

Suggested Citation

  • Dave Costenaro, 2023. "The Pie: How Has Human Evolution Distributed Non-Financial Wealth?," Papers 2304.09971, arXiv.org.
  • Handle: RePEc:arx:papers:2304.09971
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2304.09971
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Raj Chetty & Nathaniel Hendren, 2018. "The Impacts of Neighborhoods on Intergenerational Mobility I: Childhood Exposure Effects," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1107-1162.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hausman, Catherine & Stolper, Samuel, 2021. "Inequality, information failures, and air pollution," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    2. Francesco Andreoli & Eugenio Peluso, 2016. "So close yet so unequal: Reconsidering spatial inequality in U.S. cities," Working Papers 21/2016, University of Verona, Department of Economics.
    3. Kelley Sarussi & Thomas Walstrum, 2019. "Education and the Evolution of Earnings Across Population Groups Since 2000," Profitwise, Federal Reserve Bank of Chicago, issue 5, pages 1-13.
    4. Bratu, Cristina & Bolotnyy, Valentin, 2023. "Immigrant intergenerational mobility: A focus on childhood environment," European Economic Review, Elsevier, vol. 151(C).
    5. Michael Geruso & Timothy J. Layton & Jacob Wallace, 2023. "What Difference Does a Health Plan Make? Evidence from Random Plan Assignment in Medicaid," American Economic Journal: Applied Economics, American Economic Association, vol. 15(3), pages 341-379, July.
    6. Alex Bell & Raj Chetty & Xavier Jaravel & Neviana Petkova & John Van Reenen, 2019. "Who Becomes an Inventor in America? The Importance of Exposure to Innovation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(2), pages 647-713.
    7. Francesco Agostinelli & Matthias Doepke & Giuseppe Sorrenti & Fabrizio Zilibotti, 2020. "It Takes a Village: The Economics of Parenting with Neighborhood and Peer Effects," Cowles Foundation Discussion Papers 2228, Cowles Foundation for Research in Economics, Yale University.
    8. Chong Lu, 2022. "The effect of migration on rural residents’ intergenerational subjective social status mobility in China," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3279-3308, October.
    9. Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Salamanca, Nicolás & Zhu, Anna, 2022. "Intergenerational disadvantage: Learning about equal opportunity from social assistance receipt," Labour Economics, Elsevier, vol. 79(C).
    10. John Gathergood & Fabian Gunzinger & Benedict Guttman-Kenney & Edika Quispe-Torreblanca & Neil Stewart, 2020. "Levelling Down and the COVID-19 Lockdowns: Uneven Regional Recovery in UK Consumer Spending," Papers 2012.09336, arXiv.org, revised Dec 2020.
    11. Braxton, John Carter & Chikhale, Nisha & Herkenhoff, Kyle & Phillips, Gordon, 2024. "Intergenerational Mobility and Credit," IZA Discussion Papers 16826, Institute of Labor Economics (IZA).
    12. Finan, Frederico & Seira, Enrique & Simpser, Alberto, 2021. "Voting with one’s neighbors: Evidence from migration within Mexico," Journal of Public Economics, Elsevier, vol. 202(C).
    13. Kalra, Aarushi, 2021. "A 'Ghetto' of One's Own: Communal Violence, Residential Segregation and Group Education Outcomes in India," SocArXiv rzjct, Center for Open Science.
    14. Filip Gesiarz & Jan-Emmanuel De Neve & Tali Sharot, 2020. "The motivational cost of inequality: Opportunity gaps reduce the willingness to work," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-18, September.
    15. Aline Bütikofer & René Karadakic & Kjell G. Salvanes, 2021. "Income Inequality and Mortality: A Norwegian Perspective," Fiscal Studies, John Wiley & Sons, vol. 42(1), pages 193-221, March.
    16. Gerard Domènech-Arumí & Paula Eugenia Gobbi & Glenn Magerman, 2022. "Housing Inequality and how Fiscal Policy shapes it: Evidence from Belgian Real Estate," Working Papers ECARES 2022-31, ULB -- Universite Libre de Bruxelles.
    17. Will Davis & Alexander Gordan & Rusty Tchernis, 2021. "Measuring the spatial distribution of health rankings in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 30(11), pages 2921-2936, November.
    18. Tatyana Deryugina & David Molitor, 2021. "The Causal Effects of Place on Health and Longevity," Journal of Economic Perspectives, American Economic Association, vol. 35(4), pages 147-170, Fall.
    19. Michael J. Kottelenberg & Steven F. Lehrer, 2019. "How Skills and Parental Valuation of Education Influence Human Capital Acquisition and Early Labor Market Return to Human Capital in Canada," Journal of Labor Economics, University of Chicago Press, vol. 37(S2), pages 735-778.
    20. Nada Wasi & Sasiwimon Warunsiri Paweenawat & Chinnawat Devahastin Na Ayudhya & Pucktada Treeratpituk & Chommanart Nittayo, 2019. "Labor Income Inequality in Thailand: the Roles of Education, Occupation and Employment History," PIER Discussion Papers 117, Puey Ungphakorn Institute for Economic Research.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2304.09971. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.