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Physics of Personal Income

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  • Wataru Souma

Abstract

We report empirical studies on the personal income distribution, and clarify that the distribution pattern of the lognormal with power law tail is the universal structure. We analyze the temporal change of Pareto index and Gibrat index to investigate the change of the inequality of the income distribution. In addition some mathematical models which are proposed to explain the power law distribution are reviewed.

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  • Wataru Souma, 2002. "Physics of Personal Income," Papers cond-mat/0202388, arXiv.org.
    • Handle: RePEc:arx:papers:cond-mat/0202388
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    References listed on IDEAS

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    1. Sorin Solomon & Moshe Levy, 1996. "Spontaneous Scaling Emergence In Generic Stochastic Systems," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 7(05), pages 745-751.
    2. Jean-Philippe Bouchaud & Marc Mezard, 2000. "Wealth condensation in a simple model of economy," Science & Finance (CFM) working paper archive 500026, Science & Finance, Capital Fund Management.
    3. Bouchaud, Jean-Philippe & Mézard, Marc, 2000. "Wealth condensation in a simple model of economy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 282(3), pages 536-545.
    4. Wataru Souma, 2000. "Universal Structure of the Personal Income Distribution," Papers cond-mat/0011373, arXiv.org.
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    Cited by:

    1. Nikolaos Papanikolaou, 2020. "The Econophysics of Labor Income," Bulletin of Applied Economics, Risk Market Journals, vol. 7(1), pages 107-122.
    2. F. Clementi & M. Gallegati, 2005. "Pareto's Law of Income Distribution: Evidence for Germany, the United Kingdom, and the United States," Papers physics/0504217, arXiv.org, revised Mar 2006.
    3. Roy Cerqueti & Marcel Ausloos, 2015. "Statistical assessment of regional wealth inequalities: the Italian case," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(6), pages 2307-2323, November.
    4. Alberto Russo, 2009. "On the evolution of the Italian bank branch distribution," Economics Bulletin, AccessEcon, vol. 29(3), pages 2063-2078.
    5. Paulo H. dos Santos & Igor D. S. Siciliani & M. H. R. Tragtenberg, 2021. "Optimal Income Crossover for Two-Class Model Using Particle Swarm Optimization," Papers 2112.02449, arXiv.org.
    6. Soriano-Hernández, P. & del Castillo-Mussot, M. & Campirán-Chávez, I. & Montemayor-Aldrete, J.A., 2017. "Wealth of the world’s richest publicly traded companies per industry and per employee: Gamma, Log-normal and Pareto power-law as universal distributions?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 471(C), pages 733-749.
    7. Igor D. S. Siciliani & Marcelo H. R. Tragtenberg, 2017. "Kinetic theory and Brazilian income distribution," Papers 1709.06480, arXiv.org.
    8. Kyoochul Kim, 2020. "Payment Performance and Residency Discounts in the Rental Housing Market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(4), pages 1168-1197, December.
    9. Shuhei Aoki & Makoto Nirei, 2016. "Pareto Distribution of Income in Neoclassical Growth Models," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 20, pages 25-42, April.
    10. Roy Cerqueti & Marcel Ausloos, 2014. "Assessing the Inequalities of Wealth in Regions: the Italian Case," Papers 1410.4922, arXiv.org.
    11. Victor M. Yakovenko & J. Barkley Rosser, 2009. "Colloquium: Statistical mechanics of money, wealth, and income," Papers 0905.1518, arXiv.org, revised Dec 2009.

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