Since the 1980s top income inequality within occupations as diverse bankers, managers, doctors, lawyers and scientists has increased considerably. Such a broad pattern led literature to search for common explanation. In this paper, however, we argue that increases in originating few can spill overinto others creating broader changes inequality. particular, study an assignment model where genera...

On the Measurement of Long-Term Income Inequality and Income Mobility This paper proposes a two-step aggregation method for measuring long-term income inequality and income mobility, where mobility is defined as an equalizer of long-term income. The first step consists of aggregating the income stream of each individual into a measure of permanent income, which accounts for the costs associated...

this is the first study to attempt to explain income inequality using unemployment and inflation and international cross-sectional data. using a sure system, inflation is found to have an increasing impact on the shares of the lower 80% of the income distribution, while reducing the share of the highest 20%. unemployment has a negative effect on the share of the first 40%, while increases the s...

We exploit an exhaustive administrative dataset that includes the individual tax returns of all households in the top percentile of the income distribution in Germany to pin down the effective income taxation of households with very high incomes. Taking tax base erosion into account, we find that the top percentile of the income distribution pays an effective average tax rate of 30.5 percent an...

Visual Cryptography facilitates hiding a secret image into n number of shares distributed to n number of participants. This kind of scheme is very useful as the participants in such security systems need not know the cryptographic knowledge in order to recover the secret image from the shares. This phenomenon is known as VCS (Visual Cryptography Scheme). An extended VCS is the one which is capa...

Abstract Policymakers are liable to ‘treasure what is measured’ and overlook phenomena that not. In an era of increased reliance on administrative data, existing policies also often determine measured in the first place. We explore this two-way interaction between measurement policy context investment incomes capital gains missing from UK’s official income statistics. show these ‘missing income...

This paper provides formulas for optimal top marginal tax rates when couples are taxed according to income splitting between spouses, consumption is taxed, and the skill distribution is unbounded. Optimal top marginal income tax rates are computed for Germany using a dataset that includes the tax returns of all German top taxpayers. We find that the optimal top marginal tax rate converges to ab...

When 'income' in a system of demand equations is defined as total expenditure, actual expenditure on any commodity must lie between zero and income, or equivalently, budget shares must lie between zero and one. But models for expenditures or shares are often the sum of deterministic components (predicted values), which are functions of prices and income, and disturbances, usually assumed multiv...

This paper investigates the macroeconomic and social determinants of voting behavior, especially political polarization – defined here as increasing electoral success far-right far-left parties in 20 advanced countries using annual data from 1970 to 2016 covering 291 parliamentary elections. Our analysis indicates that link between income inequality appears have significantly changed over last ...