Top 0.1% Income Share 1913 1973 1978 1983 1988 1993 1998 2003 2008 4. Research by Piketty and Saez have been very influential and show that inequality has been rising rapidly over the last 50 years. See their key figure below. What are two or three ways that this figure may overstate the rise in inequality since the 1970s? Top 0.1% US Pre-Tax Income Share, 1913-2012 12% Top 0.1% income share (incomes above $1.91m in 2012) 10% 8% 6% 4% 2% 0% Souroe: Piketty and Saez. 2003 updated to 2012.Serics besed on pre taR Cesh mahet income including or excluding realieed capital gains, end aways exciudirg goremment ansers
Top 0.1% Income Share 1913 1973 1978 1983 1988 1993 1998 2003 2008 4. Research by Piketty and Saez have been very influential and show that inequality has been rising rapidly over the last 50 years. See their key figure below. What are two or three ways that this figure may overstate the rise in inequality since the 1970s? Top 0.1% US Pre-Tax Income Share, 1913-2012 12% Top 0.1% income share (incomes above $1.91m in 2012) 10% 8% 6% 4% 2% 0% Souroe: Piketty and Saez. 2003 updated to 2012.Serics besed on pre taR Cesh mahet income including or excluding realieed capital gains, end aways exciudirg goremment ansers
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
A5
Transcribed Image Text:Top 0.1% Income Share
1913
1918
1923
1928
1933
1938
1943
1949
1948
1953
1958
1963
1968
1973
1978
4. Research by Piketty and Saez have been very influential and show that inequality has been
rising rapidly over the last 50 years. See their key figure below. What are two or three ways that
this figure may overstate the rise in inequality since the 1970s?
Top 0.1% US Pre-Tax Income Share, 1913-2012
12%
+Top 0.1% income share
(incomes above $1.91m in 2012)
10%
8%
6%
4%
2%
0%
Souroe: Piketty and Soez, 2003 updated to 2012. Serics besed on pre taR Cosh market income including or
excluding realized capital gains, end aways exciudirg govemment balers
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