Wealth structures and income distribution of US households before and after the Great Recession

摘要

This paper investigates the empirical relationship between household wealth composition and income inequality in the USA, proxied by households' relative position in the income distribution. Previous research highlights wealth-income interactions as an important driver of inequality, but less is known about whether wealth composition is conducive to sustained improvements in relative income across households. Using non-parametric median slope analysis on the U.S. Survey of Consumer Finances between, 1989-, 2013, the paper examines patterns of empirical regularities between wealth composition and relative income, finding significant differences over time and between income, gender, racial, and intergenerational groups. Households holding more wealth in other property, business equity, financial investment, retirement and insurance assets, and secured debt are found to occupy higher position in the income distribution compared to households whose wealth is dominated by main residence. However, these positive effects are not experienced equally as they are found to be significantly lower for households in the poorest 20% of the income distribution and for female, Black/Latino, and millennial households. Crown Copyright (C) 2019 Published by Elsevier B.V. All rights reserved.