1 2 Killewald et al. 2017 3 Other Research C O N T E N T S - - PowerPoint PPT Presentation

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Oct 23, 2022 346 likes •568 views

Keister & Moller 2000 1 2 Killewald et al. 2017 3 Other Research C O N T E N T S Introduction and Measures of Wealth Who was the most unequal industrial society in 1990s? (Top one percent nearly 40% wealth) Net Worth: total assets

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C O N T E N T S

Keister & Moller 2000 1 Killewald et al. 2017 2 Other Research 3

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Introduction and Measures of Wealth Who was the most unequal industrial society in 1990s? (Top one percent – nearly 40% wealth) Net Worth: total assets – total liabilities/debt

Keister & Moller 2000

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Empirical Source Sources of Wealth Data and Limitations Scholars who tried to deal with data:

  • Wolff 1980, 1983 (income capitalization on census)
  • Greenwood 1983, 1987 (income capitalization on CPS)
  • Keister 2000b (microsimulation modeling on SFCC)

Keister & Moller 2000

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Trends in Wealth Inequality How much did top one percent of people own? 1950s: 35% 1962: 33.5% 1972: 29% 1976: 19% 1983: 33.8% (what bottom 80% owned declined) 1989: 37.4% (what top 0.5% owned increased more) 1995: 38.5%

Keister & Moller 2000

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Keister & Moller 2000

Source: Keister & Moller 2000, p.67

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Explanation of Wealth Inequality

  • Macro Level

market fluctuations (stock, real estate market) e.g. social pressure, solicitous insurance sales man, unstable financial market to family portfolio behavior

  • Micro Level

Age, Race, Family Structure (marriage, widowhood, family size, family dissolution etc.)

Keister & Moller 2000

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Explanation of Wealth Inequality

  • Integration of Macro and Micro Level

Stechkel & Krishman 1992 Angle 1986, 1993 Greenwood 1983, Keister 2000b, Wolff 1980 etc.

Keister & Moller 2000

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Intergenerational Processes, Mobility & Inheritance

  • How do we relieve

extreme wealth inequality?

  • Poverty transmission?
  • Inequality exacerbation?

Keister & Moller 2000

Picture Source: twoeggz.com

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Introduction and Measures of Wealth

  • Keister & Moller 2000; Spilerman 2000
  • Part I: Challenges
  • Part II: Data
  • Part III: Effects and Determinants of Wealth

Killewald et al. 2017

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Part I: Conceptual and Methodological Challenges

  • To tackle concerns of inaccurate measurement:
  • Averaging income measures across several preceding

years, when possible;

  • Modeling wealth accumulation using either lagged

dependent variables or change models.

Killewald et al. 2017

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Part I (cont. more ways of tackling measurement problems) Operationalizing an Error-Prone, Highly Skewed Variable

  • Median regression
  • Log-transform net worth
  • Inverse hyperbolic sine (HIS) transformation
  • Wealth as independent variable (x) and dependent variable (y)

Killewald et al. 2017

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Part II: Wealth Data and Patterns

Recall: Trends in Wealth Inequality Keister & Moller 2000 How much did top one percent of people own? 1950s: 35%, 1962: 33.5%, 1972: 29%, 1976: 19% 1983: 33.8%, 1989: 37.4%, 1995: 38.5% New: 1989 – 2013 (Pfeffer & Schoeni 2016) 2001: 32%, 2013: 36%

Killewald et al. 2017

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Large-scale Surveys Fielded in the US and Abroad

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Trends in Wealth and Wealth Inequality (estimates from Pfeffer & Schoeni 2016)

Killewald et al. 2017

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Part III: Wealth Consequences and Determinants

  • Wealth as predictor (X)
  • Impact of Parental Wealth:
  • ffspring education, career, wealth
  • Impact of Individual Wealth:

Financial resources, homeownership, employment, retirement, health and mortality, family structure (marriage, cohabitation, remarriage, fertility delay, parenthood), living environment, cultural status and achievement, political power etc. Killewald et al. 2017

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Part III: Wealth Consequences and Determinants

  • Wealth as outcome (Y)

Xs: income, housing, risky assets, family structure, health etc.

  • Exogenous Xs:

Age Social Origins Education Race, ethnicity and nativity Gender Macro-level context and Policy Killewald et al. 2017

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Conclusion: Wealth as Important Dimension of Social Stratification Some key words for future research

  • perationalizing net worth
  • data availability
  • components of wealth
  • qualitative research on wealth generation and use
  • racial/ethnic groups, nativity, and gender
  • macro-level determinants

Killewald et al. 2017

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More Research on Race and Wealth Inequality Oliver and Shapiro 1997 - black middle class Keister 2000 - high-risk asset ownership Scholz & Levine 2003 - income and demographic characteristics Altonji & Doraszelski 2005 - the role of permanent income …

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Thank You!