Full text: The Personal Distribution of Income

Table 1. 
1971 1962/ 
Married Single 
couples persons 
Wealth distribution: 
Pareto coefficient 
(whole range,11 values) 1.78 1.73 1.38 
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 
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 K 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

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