Top 0.1% Income Share 1913 1918 1923 1928 1933 1938 1943 1949 1948 1953 1958 1963 1968 1973 1978 4. Research by Piketty and Saez have been very influential and show that inequality has been rising...

A5

Extracted text: Top 0.1% Income Share 1913 1918 1923 1928 1933 1938 1943 1949 1948 1953 1958 1963 1968 1973 1978 4. Research by Piketty and Saez have been very influential and show that inequality has been rising rapidly over the last 50 years. See their key figure below. What are two or three ways that this figure may overstate the rise in inequality since the 1970s? Top 0.1% US Pre-Tax Income Share, 1913-2012 12% +Top 0.1% income share (incomes above $1.91m in 2012) 10% 8% 6% 4% 2% 0% Souroe: Piketty and Soez, 2003 updated to 2012. Serics besed on pre taR Cosh market income including or excluding realized capital gains, end aways exciudirg govemment balers