13
Table
Sweden 1971
married
couples
single
persons
Holland 1962
Wealth distribution
Pareto coefficient
(whole range,
11 values) 1.78 1,73 1*53
Regression of
income on wealth
coefficient yL : 0.56 0,65 0.63
Calculated Pareto
coefficient for
income: 3,19 2.66
2.20
Actual Pareto
coefficiet for
income ( 5 values) 2.62 2.14 2.08
ditto, excluding
the open size
class of wealth 3*12 2.62
The above table gives the vilues for the coefficient
of regression of the mean income on wealth. The correlation is very
high ( r is ,997 ) for the mean income values; for the mean square
correlation of the grouped income data it is modest, r2= .25 in
Holland.
From the actual ^areto coefficient for wealth and the
coefficient we can calculate the Pareto coefficiet for income
in accordance with equation (S>). In Holland we obtain 2.20,
which compares with an actual P a reto coefficient cfor income of
wealth owners of 2.08. ( The coefficient for all incomes including
pepple with no tamable wealth, is not markedly different, which
is rather surprising).
Butch
While the/results are not worse than could be expected^
the Swedish data are less straightforward. A peculiarity is here
that married couples ( to some extent also children ) are jointly
assessed for wealth tax so that their joint wealth and income is given
in the data. This leads to a splitting up of the mass of wealth