A recent literature has constructed top income shares time series over the longrun for more than 20 countries using income tax statistics. Top incomes represent a small share of the population but a very significant share of total income and total taxes paid. Hence, aggregate economic growth per capita and Gini inequality indexes are sensitive to excluding or including top incomes. We discuss the estimation methods and issues that arise when constructing top income share series, including

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... definition and comparability over time and across countries, tax avoidance and tax evasion. We provide a summary of the key empirical findings. Most countries experience a dramatic drop in top income shares in the first part of the 20th century in general due to shocks to top capital incomes during the wars and depression shocks. Top income shares do not recover in the immediate post war decades. However, over the last 30 years, top income shares have increased substantially in English speaking countries and in India and China but not in continental European countries or Japan. This increase is due in part to an unprecedented surge in top wage incomes. As a result, wage income comprises a larger fraction of top incomes than in the past. Finally, we discuss the theoretical and empirical models that have been proposed to account for the facts and the main questions that remain open. , which contain 22 country specific chapters along with a general summary chapter (Atkinson, Piketty, Saez, 2010) , and a methodological chapter (Atkinson 2007) upon which this survey draws extensively. 2 We focus on the data series produced in this project on the grounds that they are fairly homogenous across countries, annual, long-run, and broken down by income source for most countries. They cover 22 countries, including many European countries (