Women and wealth

This new NBER working paper has an abstract in which every sentence is interesting:

The extent of and changes in inter-generational mobility of wealth are central to understanding dynamics of wealth inequality but hard to measure.  Using estate tax returns data, we observe that the share of women among the very wealthy (top 0.01%) in the United States peaked in the late 1960s, reaching almost 50%.  Three decades on, women’s share had declined to one third, a return to pre-war levels.  We argue that this pattern mirrors the relative importance of inherited vs. self-made wealth in the economy and thus the gender-composition of the wealthiest may serve as a proxy for inter-generational wealth mobility.  This proxy for "dynastic wealth” suggests that wealth mobility in the past century decreased until the 1970s and rose thereafter, a pattern consistent with technological change driving long term trends in income inequality and mobility.  Greater wealth mobility in recent decades is also consistent with the simultaneous rise in top income shares and relatively stable wealth concentration.

Do note the wealth mobility discussed toward the end might be occurring only among the relatively rich, as described by Pareto’s "circulation of elites."  The pointer is from the "still excellent but why doesn’t he post more?" New Economist blog, which also references related work about the UK.

The researcher is Lena Edlund, here is her home page.  Here is her article "Hermaphroditism: What’s Not to Like?"  If you are in the popular press and are looking for a fascinating, undercovered economist to profile, try Lena Edlund.  Here is her paper on "Sex and the City."  Here is her paper on why "love marriage," as opposed to arranged marriage, is good for the economy.


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