EU Sources - Income inequality and the top earners - September 30, 2016

An OECD observer blog discusses the fact that, in recent decades, the share of national income taken by the top 1% of earners has risen. The rise has been particularly striking in the United States: in 1980, the top 1% of income recipients in the US earned 8% of all pre-tax income; by 2012, their share had risen to over 19%. Other OECD countries also saw big rises, including the UK. The rising income share of the 1% has become a hot issue, but some observers believe this focus actually misses much of the story of rising income inequality. As well as looking at the top 1% of earners, they argue, we should also look at an even smaller segment–the top 0.1% of earners (1 in 1,000), and even the top 0.01% of earners (1 in 10,000).

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