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Scholarship demonstrates that urban systems follow a power law population distribution if the population has full labor mobility. Theoretically, subpopulations should also follow a power law population distribution if that subpopulation also has full labor mobility. Examining city population distributions for White and Black Americans across US metropolitan areas from 1910 to 2020 shows that the White distribution mostly conforms to both Zipf's and Gibrat's laws throughout this period. In contrast, the Black population does not follow either law until the second half of the 20th century, a result that is consistent with theories of restricted mobility out of the South for Black Americans during the Jim Crow era. [ABSTRACT FROM AUTHOR]

Rising inequality since the 1980s has spurred much research examining the underlying causes and potential policy responses. Among the more controversial, One of the more controversial policy proposals is a progressive capital tax in response to rising top wealth shares around the world proposes a progressive capital tax in response to rising top wealth shares around the world. This paper introduces rank-based econometric methods for dynamic power laws as a tool for estimating the effect of progressive capital taxes on the distribution of wealth under different assumptions about the impact of these taxes on household behavior. In most scenarios, we find that a small tax levied on 1% of households would substantially reshape the US wealth distribution and reduce inequality. [ABSTRACT FROM AUTHOR]