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Wealth Dynamics in the 1980' and 1990's: Sweden and the U.S

Author

Listed:
  • Klevmarken, A.
  • Lupton, J.
  • Stafford, F.

Abstract

Given differences in public saving programs between Sweden and the United States, an examination of household private wealth accumulation in these two countries can be enlightening. In this paper we examine wealth inequality and mobility in Sweden and the United States over the past decade. We show that wealth inequality has been significantly greater in the U.S. than in Sweden and, while remaining relatively constant since the mid-1980's s in Sweden, has increased in the United States. In addition to less inequality and a higher median wealth, we also show that wealth quintile mobility in the 1990's has been 25.7% higher in Sweden, as measured by Shorrocks' index. Noting the role of various demographic components in shaping the patterns of wealth mobility as well as the importance of the initial wealth distribution, we utilize a matching algorithm that controls for these differences.

Suggested Citation

  • Klevmarken, A. & Lupton, J. & Stafford, F., 2000. "Wealth Dynamics in the 1980' and 1990's: Sweden and the U.S," Papers 2000-18, Uppsala - Working Paper Series.
    • Handle: RePEc:fth:uppaal:2000-18
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    References listed on IDEAS

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    Cited by:

    1. Hochguertel, Stefan & Ohlsson, Henry, 2011. "Wealth mobility and dynamics over entire individual working life cycles," Working Paper Series 1301, European Central Bank.
    2. Hochguertel, Stefan & Ohlsson, Henry, 2012. "Who is at the top? Wealth mobility over the life cycle," Working Paper Series 2012:1, Uppsala University, Department of Economics.
    3. Hugh Rockoff, 2008. "Great Fortunes of the Gilded Age," NBER Working Papers 14555, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    WEALTH ; DEMOGRAPHY ; DISTRIBUTION;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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