18
Table 1.
SWEDEN HOLLAND
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