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Importing Inequality: Immigration and the Top 1 Percent

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Listed:
  • Arun Advani
  • Felix Koenig
  • Lorenzo Pessina
  • Andy Summers

Abstract

In this paper 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 0.1% 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 (85%) of the growth in the UK top 1% income share over the past 20 years can be attributed to migration.

Suggested Citation

  • Arun Advani & Felix Koenig & Lorenzo Pessina & Andy Summers, 2020. "Importing Inequality: Immigration and the Top 1 Percent," CESifo Working Paper Series 8665, CESifo.
  • Handle: RePEc:ces:ceswps:_8665
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    Cited by:

    1. Brian D. Bell & Nicholas Bloom & Jack Blundell, 2021. "This Time is Not so Different: Income Dynamics During the COVID-19 Recession," NBER Working Papers 28871, National Bureau of Economic Research, Inc.

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    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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