Saturday, May 19, 2012
From CNN Money:
So what is behind the income gains of the 1%? Let's start with the global and technological changes that pump up the salaries of superstars in a range of professions: Call it the Yo-Yo Ma effect. In 1600 a famous cellist would have reached his career peak by playing for the king. Now Ma can stage concerts all over the world, with commensurate earnings. Apply that same concept to the in-demand skills of star lawyers or bankers or doctors in the 1% club, or of hungry entrepreneurs plying new markets.
Women in high-paying professions are another factor. Researchers from Indiana University and the Treasury Department studied the top 1% of households and found that by 2005 the number of taxpayers (largely men) with working spouses rose to almost 40%, up from 25% in 1979. That spouse tends to be a wealthy professional as well.
Read more here.