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Income Mobility of the Top One Percent

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Abstract

Circulation into and out of the top one percent is pronounced in the U.S. One third exit after a year and two-thirds exit after a decade. This mobility lowers top income shares when shifting from annual to multi-year income measures. Intragenerational mobility over two decades lowers recent top one percent fiscal income shares by over 10 percent. Two-decade mobility reduces top 0.1% shares by over 20 percent, top 0.01% shares by 30 percent, and top 0.001% shares by 40 percent. Effects of variability on wealth inequality are similar in magnitude, although more modest as a share of top wealth inequality.

Suggested Citation

  • Jeff Larrimore & David Splinter, 2026. "Income Mobility of the Top One Percent," Finance and Economics Discussion Series 2026-015, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgfe:102904
    DOI: 10.17016/FEDS.2026.015
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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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