Income Composition Inequality: A Novel Approach to Distributional Analysis
by Marco Ranaldi
(Stone Center on Socio-Economic Inequality, The Graduate Center, CUNY)
How do the dynamics of the capital share of income affect inter-personal income inequality? Or in other words: how does the distribution of capital and labor in national income, also called functional income distribution, relate to the distribution of income among individuals? Ranaldi proposes a new income-factor concentration (IFC) index which measures how much capital income is concentrated at the top (and labor income at the bottom).
Full article is available here.