Carpe Diem (Mark Perry): Significant Income Inequality in the NFL, Too (HT: Gerg Mankiw)
According to data from the IRS (presented here by the Tax Foundation), the top 25% of U.S. taxpayers earned 67.5% of total income in 2005 (most recent year available), and that group paid 86% of all income taxes paid. …
Interestingly, the pattern of income distribution in the NFL is strikingly similar to the income inequality of the general population, and is actually slightly greater in the NFL (at least for these 4 teams). For example, the incomes of the top 25% of the players on the 4 teams above are paid between 71% and 77% of the total payroll.
As I mentioned in one my very first CD posts, perhaps this pattern of income distribution is a natural and expected outcome of any extremeley competitive environment where talent is scare, valuable and highly paid, whether it's the NFL or the overall economy.
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