Redistributing Income Through Hierarchy

Redistributing Income Through Hierarchy
Fix, Blair. (2021). Working Papers on Capital as Power. No. 4. October. pp. 1-34. (Article - Working Paper; English).

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Alternative Locations

https://capitalaspower.com/2021/10/2021-04-fix-redistributing-income-through-hierarchy/, https://osf.io/preprints/socarxiv/njk67/, https://www.econstor.eu/handle/10419/244731

Abstract or Brief Description

Although the determinants of income are complex, the results are surprisingly uniform. To a first approximation, top incomes follow a power-law distribution, and the redistribution of income corresponds to a change in the power-law exponent. Given the messiness of the struggle for resources, why is the outcome so simple?

This paper explores the idea that the (re)distribution of top incomes is uniform because it is shaped by a ubiquitous feature of social life, namely hierarchy. Using a model first developed by Herbert Simon and Harold Lydall, I show that hierarchy can explain the power-law distribution of top incomes, including how income gets redistributed as the rich get richer.

Language

English

Publication Type

Article - Working Paper

Keywords

corporation despotism government hierarchy income distribution inequality power

Subject

BN Power
BN Region - North America
BN Business Enterprise
BN Comparative
BN Conflict & Violence
BN Distribution
BN Industrial Organization
BN Institutions

Depositing User

Jonathan Nitzan

Date Deposited

24 Oct 2021 14:26

Last Modified

06 Nov 2021 16:25

URL:

https://bnarchives.yorku.ca/id/eprint/715

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