"18
example, the unearned income Y 2 :
q (Y 2 ) = d Y 2
f f 2 (k 2 Y-Y 2 ) exp
[~r Y ]
dY =
Jo
u J
- 0 e *P £ - FT£ Y 2 J d Y 2 ( 6 )
k 2 y>y 2
According to this transformation, inserting for 1.57
and for k 0.81, we obtain a Pareto coefficient of 1.45
for unearned income (1.55 if we start from the empirical
value 2.08 of the total income distribution). By analogous
calculation we obtain Pareto coefficients of
2.42 (2.60) for business income and
1.92 (2.06) for "other income"^\ ^
1)
'The Pareto coefficient for "kern incomen", i.e.,
incomes of those who exclusively live on one kind
of income , is in the case of unearned income about
1.4, in the case of business income about 2.4 (see
/ / p. 167).