Inequality & Skin in the Game

[Tekward]

This interesting read gave me a new perspective on inequality and mobility:

"Consider that about ten percent of Americans will spend at least a year in the top one percent and more than half of all Americans will spent a year in the top ten percent[1]. This is visibly not the same for the more static –but nominally more equal –Europe. For instance, only ten percent of the wealthiest five hundred American people or dynasties were so thirty years ago; more than sixty percent of those on the French list were heirs and a third of the richest Europeans were the richest centuries ago."

https://medium.com/incerto/inequality-and-skin-in-the-game-d8f00bc0cb46

 

[Independent]

Yes, if we measure income inequality with a one year snapshot, we'll find greater inequality than if we measure it using total lifetime earnings. That's pretty much basic statistics.

I don't see that Talib gives a source for this data. Here's an article that quotes the same number and at least gives a researcher's name. https://money.cnn.com/2016/01/07/news/economy/top-1/index.html "Thomas Hirschl, a sociology professor at Cornell University"
But, I couldn't find the original research.

I'll guess that if we do, we'll find that a good chunk of the variability is driven by a one time capital gain.

If Hirshl used IRS data, it would be possible to do multiyear sums. Looking at his Cornell web page, he might have done some of that, but I haven't found it.