Working Paper
Income Mobility of the Top One Percent
Abstract: Circulation into and out of the top one percent is pronounced in the U.S. One third exit after a year and two-thirds exit after a decade. This mobility lowers top income shares when shifting from annual to multi-year income measures. Intragenerational mobility over two decades lowers recent top one percent fiscal income shares by over 10 percent. Two-decade mobility reduces top 0.1% shares by over 20 percent, top 0.01% shares by 30 percent, and top 0.001% shares by 40 percent. Effects of variability on wealth inequality are similar in magnitude, although more modest as a share of top wealth inequality.
JEL Classification: D31; D63; H20;
https://doi.org/10.17016/FEDS.2026.015
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Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: Finance and Economics Discussion Series
Publication Date: 2026-03-06
Number: 2026-015