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Volatile Top Income Shares in Switzerland? Reassessing the Evolution Between 1981 and 2010

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  • Foellmi, Reto

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  • Martinez, Isabel Z.

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Abstract

In the last 20 years, the share of top incomes in Switzerland has risen, while exhibiting large variations. Switzerland is similar to European countries for the top 1% but closer to the U.S. for higher top income groups. With the synthetic control method we close a time gap in the tax data, exploiting the fact that Swiss cantons changed their tax system at different points in time. Using social security data which cover all top labor incomes, we document the growing importance of labor compared to capital incomes among the top income earners in Switzerland.

Suggested Citation

  • Foellmi, Reto & Martinez, Isabel Z., 2016. "Volatile Top Income Shares in Switzerland? Reassessing the Evolution Between 1981 and 2010," Economics Working Paper Series 1612, University of St. Gallen, School of Economics and Political Science.
  • Handle: RePEc:usg:econwp:2016:12
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    References listed on IDEAS

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    1. Christoph A. Schaltegger & Christoph Gorgas, 2011. "The Evolution of Top Incomes in Switzerland over the 20th Century," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 147(IV), pages 479-519, December.
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    Cited by:

    1. Marius Brülhart & Didier Dupertuis & Elodie Moreau, 2018. "Inheritance flows in Switzerland, 1911–2011," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 154(1), pages 1-13, December.
    2. Krapf, Matthias, 2018. "The Joint Distribution of Wealth and Income Risk: Evidence from Bern," Working papers 2018/18, Faculty of Business and Economics - University of Basel.
    3. Bütler, Monika & Stadelmann, Sabrina, 2019. "Building on pension: Second pillar wealth as a way to finance real estate?," Economics Working Paper Series 1913, University of St. Gallen, School of Economics and Political Science, revised Jan 2020.
    4. Lars P. Feld & Christian Frey & Christoph A. Schaltegger & Lukas A. Schmid, 2018. "Fiscal Federalism and Income Inequality: An Empirical Analysis for Switzerland," CESifo Working Paper Series 7407, CESifo.
    5. Paul J.J. Welfens, 2019. "Council of Economic Advisers: Biased Per Capita Consumption Comparison of the US with Europe," EIIW Discussion paper disbei257, Universitätsbibliothek Wuppertal, University Library.

    More about this item

    Keywords

    Income Inequality; Synthetic Control Method; Pareto Interpolation; Labor Income; Wealth Inequality; Tax Data;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913

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