13
Table 1
Sweden 1971
3 |S^!?ns
H-.1I n 1962/5
Wealth distribution
Pareto coefficient
(whole range,
11 values) 1.78 1.73 1»38
Regression of
income on wealth
coefficient /( * 0.56
Calculated Pareto
coefficient for
incomes 3*18
0.65
0.63
2.66
2.20
Actual Pareto
c efficiet £ r
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 vAlues 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 ^'aret coefficle t for wealth and the
coefficient A5 we can calculate the Pareto coefficiet for income
in accordance with equation ($). In Holland we obtain 2.20,
which compares with an actual P a ret oefficieit ptoT income of
wealth owners of 2,08. ( The coefficient for all Incomes includi g
pepple with no taxable wealth, is n t markedly different, which
is rather surprising).
Sutch . ,
hile the/results are not wrse than c uld be expected
the Swedish data are less straightforward. A peculiarity is here
that married c uploo ( to s me extent als children ) are j intly
assessed f r wealth tax s that their joint wealth and inc me is given
in the data This leads t a splitting up f the maos f we .1th