13
Table
Sweden 1 971
married
couples
single
persons
Holland 1962/3
Wealth distribution
Pareto coefficient
(whole range,
11 values) 1.78 1.73 1.38
Regression of
income on wealth
coefficient \C : 0.56 0.65
Calculated Pareto
coefficient for
income: 5.18 2.66
0.63
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 v&lues 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, r^= .25 in
Holland.
From the actual -^areto coefficient for wealth and the
coefficient K, 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 reto voefficieht ( for income of
wealth owners of 2.08. ( The coefficient for all incomes^including
pepple with no taxable 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 als^o^c&ildren ) 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