Income inequality

Part 1

Elena Granaglia
Household market and
disposable income
Market income inequality
Household market income
 Functional distribution
Labour shares

Source: Canelli, Realfonzo da dati Ameco

Functional distribution
 Effects
Increase in market income inequality
- Milanovic (voxeu): Gini of capital income in rich countries up
to 90%
- Wider Report 2022: in EU, the bottom 50% has 3% of total
net wealth compared to almost 60% owned by top 10%?

Piketty?
- r bigger than g
- the latest increase in wealth concentration

But….
Inequality within the labor share
 Labor inequalities

The growing weight of underemployment and the persistent question of

unemployment.....
 As overall result ... «the great
divergence»

See also: The Painful Separation, Where Did the Productivity Growth Go?
Inflation Dynamics and the Distribution of Income (NBER Working Paper No. 11842)