A Pareto upper tail for capital income distribution

摘要

We present a study of the capital income distribution and of its contribution to the total income (capital income share) using individual tax income data in Romania, for 2013 and 2014. Using a parametric representation we show that the capital income is Pareto distributed in the upper tail, with a Pareto coefficient alpha similar to 1.44 which is much smaller than the corresponding coefficient for wage- and non-wage-income (excluding capital income), of alpha similar to 2.53. Including the capital income contribution has the effect of increasing the overall inequality measures. (C) 2017 Elsevier B.V. All rights reserved.