Title: Intergenerational transmission of tail inequality in incomes
Authors: Joseph Gatus - Goldman Sachs (United Kingdom)
Rustam Ibragimov - Imperial College London and St. Petersburg State University (United Kingdom)
Paul Kattuman - University of Cambridge (United Kingdom) [presenting]
Abstract: It is known that over the last many decades, income inequality has increased substantially. It is also known that much of the increase has been in the upper tail of the income distribution. It would be useful to know to what extent the increase in upper-tail income inequality is intergenerationally transmitted. The tail index of the income distribution is a summary measure of inequality among top incomes. We examine the direction and extent to which the intergenerational mobility estimated for the United Kingdom using the British Household panel survey accounts for the changes in the tail index of the income distribution of the parent's generation to the tail index of the income distribution of the child's generation. We elucidate the methodological contribution and discuss findings and implications for the evolution of upper-tail income inequality.