EH.Net Abstracts in Economic History

AEH: EUR.INEQ: Top Incomes and Earnings in Portugal 1936-2004

Facundo Alvaredo (alvaredo at pse.ens.fr)

Sun Apr 27 22:12:43 EDT 2008

                ABSTRACTS IN ECONOMIC HISTORY
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Name: Facundo Alvaredo
Email: alvaredo at pse.ens.fr
Institution: Paris School of Economics

Co-author: none

Title: Top Incomes and Earnings in Portugal 1936-2004

Internet Address of abstracted work:  http://www.pse.ens.fr/document/index.html

By mail: not available

Language: English

Abstract:
This paper analyzes income and earnings concentration in Portugal 
from a long-run perspective using personal income and wage tax 
statistics. Our results suggest that income concentration was much 
higher during the 1930s and early 1940s than it is today. Top income 
shares estimated from reported incomes deteriorated during the Second 
World War, even if Portugal did not take active participation in the 
conflict. However, the magnitude of the drop was less important than 
in other European countries. The level of concentration between 1950 
and 1970 remained relatively high compared to countries such as 
Spain, France, UK or the United States. The decrease in income 
concentration, started very moderately at the end of the 1960s and 
which accelerated after the revolution of 1974, began to be reversed 
during the first half of the 1980s. During the last fifteen years top 
income shares have increased steadily. The rise in wage concentration 
contributed to this process in a significant way. The evidence since 
1989 suggests that the level of marginal tax rate at the top has not 
been the primary determinant of the level of top reported incomes. 
Marginal rates have stayed constant in a context of growing top 
shares.

Bibliography: Alvaredo, Facundo. "Top Incomes and Earnings in 
Portugal 1936-2004."  Paris School of Economics Working Paper, 2008.

Subject: Q
Geographical Area: 4
Country/Region: Portugal
Time Period: 9

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