Full text: The Personal Distribution of Income

11 
only one has wealth, single men and single women. The 
reduction of the sample impairs the regularity of the data 
and I have therefore aggregated the four into two 
groups,married couples and single persons. The calculated 
Pareto coefficients for income of wealth owners are much 
higher than the actual ones.These calculated coefficient 
correspond more nearly to those of all income receivers 
including the wealthless ones. We get,however, also a 
reasonably good correspondence with the actual income data 
for wealth owners if we exclude the open size class from 
the calculation. This might perhaps be motivated by the 
argument that the open size class does not enter the 
calculation of Kt either. The motivation is not entirely 
convincing and the results are somewhat inconclusive. 
Since the conditional income distributions in the various 
wealth classes have been referred to several times I give 
in Table 2 these data for the couples where both husband 
and wife have wealth. 
Table 2 
Wealth in 000 K CONDITIONAL INCOME DISTRIBUTION $ 
Mean In income Pareto coefficient 
150 - 
175 
4.74 
4.06 
175 - 
200 
4.76 
3.55 
200 - 
250 
4.79 
3.83 
250 - 
300 
4.84 
3.92 
300 - 
400 
4.88 
3.69 
400 - 
500 
4.95 
3.34 
500 - 
750 
5.01 
3.29 
750 - 
1000 
5.09 
3.00 
1000 
- 2000 
5.18 
3.47 
2000 
- 5000 
5.38 
2.19 
5000 
- 
(5.74) 
1.17 
All 
2.68 
All without 
open wealth class 3.16 
The conditional distributions have all Pareto tails 
although the fit is bad (only 4 values can be used).The 
Pareto coefficient is between 3 and 4 in all except the 
last two size classes where it is very low,and it is 2.68 
for the whole income distribution.lt appears that the 
distribution as a whole is decisively influenced by the 
last two wealth classes where the income distribution is 
very unequal owing to the wide range of wealth in these 
classes. In this way the peculiar result arises that the 
total income distribution is more unequal than almost all 
of the conditional income distributions.
	        

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