Emmanuel Saez
Emmanuel Saez, born on November 26, 1972, in Francoist Spain, is a French-American economist of considerable repute. He holds the esteemed position of professor of economics at the University of California, Berkeley. His scholarly pursuits are deeply rooted in public economics, with a particular emphasis on optimal tax theory and the intricate dynamics of economic inequality. Saez has dedicated significant effort to meticulously tracking the income trajectories of various economic strata—the poor, the middle class, and the affluent—across the globe.
In collaboration with fellow economists Thomas Piketty and Gabriel Zucman, Saez's research has illuminated a stark trend: top earners in the United States have, over the past three decades, captured an ever-increasing share of the nation's aggregate income. Their findings suggest that the level of income inequality in the contemporary US is approaching figures last seen before the Great Depression. Based on this analysis, Saez advocates for substantially higher marginal tax rates, proposing figures as high as 70% or even 90%. His contributions have not gone unnoticed; he was awarded the prestigious John Bates Clark Medal in 2009 and a MacArthur Fellowship, often referred to as a "genius grant," in 2010.
Academic Background
Saez's academic journey began with exceptional promise. In 1992, he achieved a remarkable 15th rank in the highly competitive entrance examination for École polytechnique, an institution renowned as France's premier engineering school. He also secured 16th place for admission to the École Normale Supérieure (ENS Ulm), the institution he ultimately chose to attend. His cohort at ENS Ulm was notably distinguished, including the 2010 Fields Medalist Cédric Villani, the mathematician Vincent Lafforgue, and the physicist Bruno Andreotti [ fr ]. Saez completed his undergraduate studies in mathematics in 1996. His economic education continued at the School for Advanced Studies in the Social Sciences (EHESS) in Paris.
He then pursued his doctoral studies in economics at the Massachusetts Institute of Technology (MIT), earning his Ph.D in 1999. His doctoral advisors included prominent figures like James M. Poterba and Peter Diamond. His academic influences also extend to Anthony Barnes Atkinson.
Following his doctoral work, Saez served as an assistant professor at Harvard University from 1999 to 2002. Subsequently, he accepted a professorship at the University of California, Berkeley, where he continues his impactful research and teaching.
Academic Work
Saez's research portfolio is extensive and covers critical areas of public economics and economic history. He is associated with the New Keynesian economics school of thought. His work delves deeply into the theory of optimal taxation and transfer systems, exploring multifaceted issues such as wealth and income inequality, the taxation of capital income, and the economics of retirement. Beyond theoretical explorations, Saez has produced a significant body of empirical research, often applying the insights from his theoretical models to real-world US household data.
A central theme in his research is the concentration of income and wealth at the very top of the economic distribution, particularly the top 0.1%. This focus has led him to develop influential theories concerning the "great compression" and the "great divergence" in income trends, prompting considerable debate and further research into the ideal structure of wealth distribution.
However, Saez's methodologies and conclusions have also faced scrutiny. Conservative critics, such as James Pethokoukis of the American Enterprise Institute, have pointed out that Saez and Piketty primarily measure "market income." This metric encompasses all income reported on tax returns before taxes are applied, but notably excludes various forms of government support and benefits, including unemployment insurance, welfare payments, food stamps, Medicare, Medicaid, Social Security, and employer-provided health insurance. Saez defends these data as the most consistent available, having been measured uniformly since 1913. Critics, however, argue that this exclusion might exaggerate the extent of inequality.
In 2011, Saez, alongside Peter Diamond, published a widely discussed paper that proposed a significant increase in the optimal marginal tax rate for North Atlantic societies, particularly the United States. They argued for a rate of 73%, a substantial leap from the then-current top US marginal tax rate of 42.5%.
In collaboration with Raj Chetty and other researchers, Saez has also investigated social mobility within the United States. Their findings revealed significant regional disparities in mobility, which they correlated with five key factors: residential segregation, income inequality, the quality of local school systems, the prevalence of social capital, and prevailing family structures.
Awards
Saez's groundbreaking work has been recognized with numerous accolades.
John Bates Clark Medal
In 2009, he was honored with the John Bates Clark Medal. This award is presented annually to "that American economist under the age of forty who is judged to have made the most significant contribution to economic thought and knowledge." Saez's contributions have been primarily in the field of Public Economics. The citation for the 2009 medal specifically highlighted his ability to bridge theoretical and empirical approaches to policy questions. It stated that he "refines the theory in ways that link the characteristics of optimal policy to measurable aspects of the economy and of behavior, while on the other hand undertaking careful and creative empirical studies designed to fill the gaps in measurement identified by the theory." The citation further noted that through his interconnected papers, he has brought "the theory of taxation closer to practical policy making, and has helped to lead a resurgence of academic interest in taxation."
MacArthur Fellow
In 2010, the MacArthur Foundation recognized Saez as a MacArthur Fellow. This fellowship acknowledges his significant research contributions, particularly his investigations into the complex relationship between income and tax policy.
Other Awards
The Cercle des économistes, a prominent French economic think tank, bestowed upon Saez the 2010 Award for the Best Young French Economist. In 2014, he received the H. C. Recktenwald Prize in Economics. Further academic recognition came in 2019 when he was awarded an honorary Doctor of Laws degree by Harvard University.