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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. Arun Advani & George Bangham & Jack Leslie, 2021. "The UK's wealth distribution and characteristics of high‐wealth households," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 397-430, September.
    2. Brian Bell & Nicholas Bloom & Jack Blundell, 2021. "This time is not so different: income dynamics during the Covid-19 recession," CEP Discussion Papers dp1792, Centre for Economic Performance, LSE.
    3. Monica BURESCU MIHĂILA & Paula Roxana CUCOȘ, 2023. "Implications of migration policies on reducing income inequalities and poverty in Europe," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(635), S), pages 23-42, Summer.
    4. Linsi, Lukas & Hopkin, Jonathan & Jaupart, Pascal, 2023. "Exporting inequality: US investors and the Americanization of executive pay in the United Kingdom," LSE Research Online Documents on Economics 113543, London School of Economics and Political Science, LSE Library.
    5. Christian Dustmann & Yannis Kastis & Ian Preston, 2023. "Inequality and Immigration," RF Berlin - CReAM Discussion Paper Series 2307, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    6. Arun Advani & Hannah Tarrant, 2021. "Behavioural responses to a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 509-537, September.
    7. Advani, Arun & Burgherr, David & Summers, Andy, "undated". "Taxation and Migration by the Super-Rich," CAGE Online Working Paper Series 630, Competitive Advantage in the Global Economy (CAGE).
    8. Advani, Arun & Burgherr, David & Savage, Mike & Summers, Andrew, 2022. "The UK’s global economic elite: a sociological analysis using tax data," LSE Research Online Documents on Economics 114607, London School of Economics and Political Science, LSE Library.

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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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