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Importing inequality : Immigration and the Top 1 percent

Author

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  • Advani, Arun

    (Department of Economics and CAGE Research Centre, University of Warwick; Institute for Fiscal Studies)

  • Koenig, Felix

    (Heinz College, Carnegie Mellon University)

  • Pessina, Lorenzo

    (Department of Economics, Columbia University)

  • Summers, Andy

    (Department of Law, London School of Economics)

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. JEL codes: H2, J3, J6

Suggested Citation

  • Advani, Arun & Koenig, Felix & Pessina, Lorenzo & Summers, Andy, 2020. "Importing inequality : Immigration and the Top 1 percent," The Warwick Economics Research Paper Series (TWERPS) 1305, University of Warwick, Department of Economics.
  • Handle: RePEc:wrk:warwec:1305
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    Cited by:

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    2. 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.
    3. Arun Advani & Hannah Tarrant, 2021. "Behavioural responses to a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 509-537, September.
    4. 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.
    5. Linsi, Lukas & Hopkin, Jonathan & Jaupart, Pascal, 2021. "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.
    6. Advani, Arun & Bangham, George & Leslie, Jack, 2021. "The UK's wealth distribution and characteristics of high-wealth households," CAGE Online Working Paper Series 576, Competitive Advantage in the Global Economy (CAGE).
    7. Advani, Arun & Burgherr, David & Summers, Andy, 2022. "Taxation and Migration by the Super-Rich," The Warwick Economics Research Paper Series (TWERPS) 1427, University of Warwick, Department of Economics.
    8. Advani, Arun & Tarrant, Hannah, 2021. "Behavioural responses to a wealth tax," CAGE Online Working Paper Series 577, Competitive Advantage in the Global Economy (CAGE).

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    More about this item

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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