The paper deals with the role of the expansion of the financial sector in the recent increase in income inequality. It first considers the positions presented by Piketty in his recent book on this theme, criticising his neglect of role of the financial sector and his view that the low growth of the economy is inevitably and is not related to the changes in income distribution. Then it presents some analyses to show that the size of the financial sector affects the distribution of income between social groups. By using these analyses, the paper proposes an interpretation of the role of the financial industry in the recent changes in income inequality and in the burst of the recent financial crisis.
Keywords: Income distribution, inequality, financial sector
Jel Code: E25