Personal income distributions in Japan are analyzed empirically and a simple stochastic model of the income process is proposed. Based on empirical facts, we propose a minimal two-factor model. Our model of personal income consists of an asset accumulation process and a wage process. We show that these simple processes can successfully reproduce the empirical distribution of income. In particular, the model can reproduce the particular transition of the distribution shape from the middle part to the tail part. This model also allows us to derive the tail exponent of the distribution analytically.
The influence of per capita income on life expectancy is well documented, mostly through studies of multinational samples. However, one expects fairly weak correlations at both ends of the life span, that is to say in early infancy and in age groups of elderly from 85 to 100 years. The reason is that at both ends mortality is largely controled by biological factors rather than by socio-economic conditions. In order to test this conjecture, we explore the influence of income on age groups, separately in France, the United States and South Korea. More precisely in each country we compare income …
This paper identifies the salient factors that characterize the inequality income distribution for Romania. Data analysis is rigorously carried out using sophisticated techniques borrowed from classical statistics (Theil). Decomposition of the inequalities measured by the Theil index is also performed. This study relies on an exhaustive (11.1 million records for 2014) data-set for total personal gross income of Romanian citizens.
Using the empirical data from the Norwegian tax office, we analyse the wealth and income of the richest individuals in Norway during the period 2010--2013. We find that both annual income and wealth level of the richest individuals are describable using the Pareto law. We find that the robust mean Pareto exponent over the four-year period to be $\approx 2.3$ for income and $\approx 1.5$ for wealth.
Universidade Federal Rural do Rio de Janeiro（里约热内卢联邦农村大学）；Universidade Federal de Juiz de Fora（茹伊斯德福拉联邦大学）；Universidade Federal do Rio de Janeiro（里约热内卢联邦大学）；Instituto Brasileiro de Geografia e Estatística（巴西地理与统计研究所）；Comissão Nacional de Energia Nuclear（国家核能委员会）
The paper provides a survey of results related to the "$κ$-generalized distribution", a statistical model for the size distribution of income and wealth. Topics include, among others, discussion of basic analytical properties, interrelations with other statistical distributions as well as aspects that are of special interest in the income distribution field, such as the Gini index and the Lorenz curve. An extension of the basic model that is most able to accommodate the special features of wealth data is also reviewed. The survey of empirical applications given in this paper shows the $κ$-gene…
We study the evolution of income in India from 2014-19 and find that while income inequality remains largely consistent over this time, the lower end of the income distribution has experienced significant losses - the bottom ventile shows not only a decline in income share of ~38%, but also negative real average income growth of -4.6% per annum. We further investigate the composition of this part of the distribution using rural and urban splits, and find that even as income shares at the bottom of the urban distribution have increased over time, those at the bottom of the rural distribution ha…
Income inequality is known to have negative impacts on an economic system, thus has been debated for a hundred years past or more. Numerous ideas have been proposed to quantify income inequality, and the Gini coefficient is a prevalent index. However, the concept of perfect equality in the Gini coefficient is rather idealistic and cannot provide realistic guidance on whether government interventions are needed to adjust income inequality. In this paper, we first propose the concept of a more realistic and feasible income equality that maximizes total social welfare. Then we show that an optima…
Tsallis statistics in the income distribution of Brazil
Comissão Nacional de Energia Nuclear – CNEN（巴西国家核能委员会）；Instituto Brasileiro de Geografia e Estatística – IBGE（巴西地理与统计研究所）；Universidade Federal do Rio de Janeiro – UFRJ（里约热内卢联邦大学）
We discuss the distribution of commuting distances and its relation to income. Using data from Denmark, the UK, and the US, we show that the commuting distance is (i) broadly distributed with a slow decaying tail that can be fitted by a power law with exponent $γ\approx 3$ and (ii) an average growing slowly as a power law with an exponent less than one that depends on the country considered. The classical theory for job search is based on the idea that workers evaluate the wage of potential jobs as they arrive sequentially through time, and extending this model with space, we obtain prediction…
A brief overview of the models and data analyses of income, wealth, consumption distributions by the physicists, are presented here. It has been found empirically that the distributions of income and wealth possess fairly robust features, like the bulk of both the income and wealth distributions seem to reasonably fit both the log-normal and Gamma distributions, while the tail of the distribution fits well to a power law (as first observed by sociologist Pareto). We also present our recent studies of the unit-level expenditure on consumption across multiple countries and multiple years, where …
