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How the Rich Are Different: Hierarchical Power as the Basis of Income Size and Class

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  • Fix, Blair

    (York University)

Abstract

This paper investigates a new approach to understanding personal and functional income distribution. I propose that hierarchical power --- the command of subordinates in a hierarchy --- is what distinguishes the rich from the poor and capitalists from workers. Specifically, I hypothesize that individual income increases with hierarchical power, as does the share of individual income earned from capitalist sources. I test this idea using evidence from US CEOs, as well as a numerical model that extrapolates the CEO data. The results indicate that income tends to increase with hierarchical power, as does the capitalist composition of income. This suggests that hierarchical power may be a determinant of both personal and functional income.

Suggested Citation

  • Fix, Blair, 2019. "How the Rich Are Different: Hierarchical Power as the Basis of Income Size and Class," SocArXiv t8muy, Center for Open Science.
    • Handle: RePEc:osf:socarx:t8muy
    DOI: 10.31219/osf.io/t8muy
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    Cited by:

    1. Blair Fix, 2021. "How the rich are different: hierarchical power as the basis of income size and class," Journal of Computational Social Science, Springer, vol. 4(2), pages 403-454, November.
    2. Fix, Blair, 2019. "An Evolutionary Theory of Resource Distribution," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue 90, pages 65-97.
    3. Fix, Blair, 2021. "The Rise of Human Capital Theory," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue 95, pages 29-41.

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