The Spillover Effects of Top Income Inequality / Joshua D. Gottlieb, David Hémous, Jeffrey Hicks, Morten G. Olsen.

Format:

Book

Author/Creator:

Gottlieb, Joshua D.

Contributor:

National Bureau of Economic Research.

Hémous, David.

Hicks, Jeffrey.

Olsen, Morten G.

Series:

Working Paper Series (National Bureau of Economic Research) no. w31366.

NBER working paper series no. w31366

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2023.

Summary:

Top income inequality in the United States has increased considerably within occupations. This phenomenon has led to a search for a common explanation. We instead develop a theory where increases in income inequality originating within a few occupations can "spill over" through consumption into others. We show theoretically that such spillovers occur when an occupation provides non-divisible services to consumers, with physicians our prime example. Examining local income inequality across U.S. regions, the data suggest that such spillovers exist for physicians, dentists, and real estate agents. Estimated spillovers for other occupations are consistent with the predictions of our theory.

Notes:

Print version record

June 2023.