Fix, Blair2022-11-102022-11-102017Evidence for a Power Theory of Personal Income Distribution. Fix, Blair. (2017). Working Papers on Capital as Power. No. 2017/03. July. pp. 1-125. (Article - Working Paper; English).http://hdl.handle.net/10315/40031income distribution hierarchy powerThis paper proposes a new ‘power theory’ of personal income distribution. Contrary to the standard assumption that income is proportional to productivity, I hypothesize that income is most strongly determined by social power, as indicated by one’s position within an institutional hierarchy. While many theorists have proposed a connection between personal income and power, this paper is the first to quantify this relation. I propose that power can be quantified in terms of the number of subordinates below one’s position in a hierarchy. Using this definition, I find that relative income within firms scales strongly with hierarchical power. I also find that hierarchical power has a stronger effect on income than any other factor for which data is available. I conclude that this is evidence for a power theory of personal income distribution.Working Paper