10
Table 1.
LAND
Wealth distribution:
Pareto coefficient
(whole range,11 values)
1.38
1971
Married
couples
W E D E N
1962/3
Single
persons
1.78
1.73
Regression of income
on wealth,coefficient 0.56 0.65
0.63
Calculated Pareto
coefficient for
income 3.18 2.66
2.20
Actual Pareto
coefficient for
income,(5 values) 2.62 2.14
2.08
Ditto,excluding the
open size class of
wealth 3.12 2.62
H O L
Table 1 gives the values for the coefficient of regression
of the means of income on wealth. The correlation is very
high (r 2 is more than 0.99) for the mean income values;
for the correlation of the grouped income data it is
modest (r 2 = 0.25 in Holland).
From the empirical Pareto coefficient for wealth and the
calculated regression coefficient it we can calculate the
Pareto coefficient for income in accordance with equation
(8). For Holland we obtain 2.20 which compares with an
actual Pareto coefficient for income of wealth owners of
2.08. The coefficient for all incomes,including persons
with no taxable wealth is not very different which is
rather surprising.
While the Dutch data are not worse than could be expected
the Swedish data are not so good. The population of wealth
holders is here (on account of the tax laws) split into
four groups: Couples where both have wealth,couples where