The Rich, the Affluent and the Top Incomes: A Literature Review

Abstract

We review the literature about the rich, the affluent and the top incomes focusing in two issues: identification and measurement, and the analysis of the determinants of richness. The review discusses data sources, indicators, populations and units of analysis used for the identification of the rich, approaches used to construct affluence lines and measures of richness. It also surveys empirical results about the composition of the incomes of the rich and the role of direct determinants of richness, such as individual characteristics, the State and the structure of production. We cover literature since the early twentieth century but give special attention to the research conducted after the 2000s.

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“…We need to find a way to define the 'rich', as distinct from the rest of society. The simplest way of doing this is to give a relative definition of the rich, setting the bar at certain multiplier of the median income or wealth Medeiros et al [16]. For wealth, a convenient threshold is ten times the median Alfani [17].…”

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“…We need to find a way to define the 'rich', as distinct from the rest of society. The simplest way of doing this is to give a relative definition of the rich, setting the bar at certain multiplier of the median income or wealth [14]. For wealth, a convenient threshold is ten times the median [7].…”