Spatial wealth inequality in the United States: theory and evidence

Thomas Kemeny, Dylan Shane Connor, Joel Suss, Siqiao Xie, Jiwon Jang and Zhining Gu

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Despite extensive research on spatial inequality, the geography of wealth remains understudied. We develop a theoretical framework explaining why wealth’s spatial distribution differs from income’s and how local advantages create self-reinforcing dynamics. Using novel data tracking household net worth across 722 U.S. commuting zones from 1960-2020, we establish five stylized facts. Wealth is 60-70% more spatially concentrated than income, with patterns distinct from income and housing values. Post-1980 increases in between-place inequality reflect places changing positions rather than divergence. Within places, bottom 50% wealth shares declined nationwide. These patterns reveal feedback mechanisms compounding spatial advantages, highlighting welfare disparities exceeding income-focused research.

JEL-codes: D31 E21 N30 R10 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2026-03
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:137667

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