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Volatile Top Income Shares in Switzerland? Reassessing the Evolution between 1981 and 2010

Reto Foellmi; Isabel Z. Martínez

SIAW-HSG, University of St. Gallen

The Review of Economics and Statistics 2017

In the past twenty years, the share of top incomes in Switzerland has risen, while exhibiting large variations. Switzerland is similar to European countries for the top 1% but closer to the United States for higher top income groups. With the synthetic control method, we close a time gap in the tax data, exploiting the fact that Swiss cantons changed their tax system at different points in time. Using social security data, which cover all top labor incomes, we document the growing importance of labor compared to capital incomes among top income earners in Switzerland.

DOI
10.1162/rest_a_00644
Volume
99 (5)
Pages
793-809
Language
en
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