Part 3/9:

With a focus on anonymized tax data from 2000 to 2022, Zidar and Zwick's research examines corporations and partnerships that typify medium-sized businesses, often with annual sales of about $20 million and a workforce of around 100 employees.

The Hidden Entrepreneurs

Previously co-authors of the groundbreaking paper “Capitalists in the 21st Century,” Zidar and Zwick discovered a critical distinction in income sources between the top 10% of earners and the highest earners in the U.S. For the majority, wages are the primary income source, but at the zenith of income, around the 2.1% level, profits from tangible businesses become the predominant source of wealth. Interestingly, these businesses are rarely finance-driven but are focused on producing goods and services.