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The challenge of measuring UK wealth inequality in the 2000s

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  • Alvaredo, Facundo
  • Atkinson, Anthony B.
  • Morelli, Salvatore

Abstract

The concentration of personal wealth is now receiving a great deal of attention – after having been neglected for many years. One reason is the growing recognition that, in seeking explanations for rising income inequality, we need to look not only at wages and earned income but also at income from capital, particularly at the top of the distribution. In this paper, we use evidence from existing data sources to attempt to answer three questions: (i) What is the share of total personal wealth that is owned by the top 1 per cent, or the top 0.1 per cent? (ii) Is wealth much more unequally distributed than income? (iii) Is the concentration of wealth at the top increasing over time? The main conclusion of the paper is that the evidence about the UK concentration of wealth post-2000 is seriously incomplete and significant investment in a variety of sources is necessary if we are to provide satisfactory answers to the three questions.

Suggested Citation

  • Alvaredo, Facundo & Atkinson, Anthony B. & Morelli, Salvatore, 2016. "The challenge of measuring UK wealth inequality in the 2000s," LSE Research Online Documents on Economics 67131, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:67131
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    References listed on IDEAS

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    1. A. B. Atkinson & A. J. Harrison, 1974. "Wealth Distribution And Investment Income In Britain," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 20(2), pages 125-142, June.
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    3. anonymous, 1979. "Monetary policy report to Congress," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Aug, pages 591-602.
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    5. Unknown, 1979. "Annual Report on Tobacco Statistics, 1978," Statistical Bulletin 154338, United States Department of Agriculture, Economic Research Service.
    6. Saez, Emmanuel & Zucman, Gabriel, 2014. "Wealth Inequality in the United States since 1913: Evidence from Capitalized Income Tax Data," CEPR Discussion Papers 10227, C.E.P.R. Discussion Papers.
    7. Kopczuk, Wojciech & Saez, Emmanuel, 2004. "Top Wealth Shares in the United States, 1916-2000: Evidence From Estate Tax Returns," National Tax Journal, National Tax Association;National Tax Journal, vol. 57(2), pages 445-487, June.
    8. Hills, John & Bastagli, Francesca & Cowell, Frank & Glennerster, Howard & Karagiannaki, Eleni & McKnight, Abigail, 2013. "Wealth distribution, accumulation and policy," LSE Research Online Documents on Economics 51284, London School of Economics and Political Science, LSE Library.
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    More about this item

    Keywords

    wealth inequality; estate multiplier; investment income;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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