This is indicated by the profile of the elasticity across the income distribution, which falls from 0.80 for high income to 0.75 around the average and 0.60 for low-income households. This finding is in line with the broad conclusions from previous empirical studies on inequality and in particular OECD (2011b), documenting widespread increases in inequality in OECD countries between the mid-1980s and the late 2000s. It is assumed that GDP per capita drives long-run levels of household incomes across the distribution.