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Distributional National Accounts: Methods and Estimates for the United States

Thomas Piketty, Emmanuel Saez, Gabriel Zucman

Published May 2018 · The Quarterly Journal of Economics · Journal article

Summary

The authors combine tax, survey, and national accounts data to build distributional national accounts that allocate 100% of U.S. national income to individuals from 1913 onward. This lets them measure income growth consistently with macroeconomic aggregates across the entire distribution, both before and after taxes and transfers. They document a sharp rise in top income shares and stagnation at the bottom since 1980.

Key findings

  • Average pre-tax national income per adult grew about 60% since 1980 but stagnated for the bottom 50% at roughly $16,000 per year.
  • The income share of the top 1% rose substantially while the bottom 50% share fell over the same period.
  • Government taxes and transfers offset only part of the rise in pre-tax inequality, especially for working-age adults.

Subjects & keywords

Cite this paper

APA

Thomas Piketty, Emmanuel Saez, & Gabriel Zucman (2018). Distributional National Accounts: Methods and Estimates for the United States. The Quarterly Journal of Economics. https://doi.org/10.1093/qje/qjx043

BibTeX
@article{piketty2018distributional,
  author    = {Thomas Piketty and Emmanuel Saez and Gabriel Zucman},
  title     = {Distributional National Accounts: Methods and Estimates for the United States},
  journal   = {The Quarterly Journal of Economics},
  year      = {2018},
  doi       = {10.1093/qje/qjx043},
  url       = {https://doi.org/10.1093/qje/qjx043}
}

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