We investigate the Japanese personal income distribution in the high income range over the 112 years (1887–1998), and that in the middle income range over the 44 years (1955–1998). It is observed that the distribution pattern of the log-normal with power law tail is the universal structure. However, the indexes specifying the distribution differ from year to year. One of the index characterizing the distribution is the mean value of the log-normal distribution; the mean income in the middle income range. It is found that this value correlates linearly with the gross domestic product (GDP). To clarify the temporal change of the equality or inequality of the distribution, we analyze Pareto and Gibrat indexes, which characterize the distribution in the high income range and that in the middle income range, respectively. It is found for some years that there is no correlation between the high income and the middle income. It is also shown that the mean value of Pareto index equals to 2, and the change of this index is effected by the change of the asset price. From these analysis, we derive four constraints that must be satisfied by mathematical models.
Power law tails in the Italian personal income distribution
