What Do We Know About Evolution of Top Wealth Shares in the United States?

Wojciech Kopczuk

No 20734, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: I discuss available evidence about the evolution of top wealth shares in the United States over the last one hundred years. The three main approaches – Survey of Consumer Finances, estate tax multiplier techniques and capitalization method – generate generally consistent findings until mid-1980s but diverge since then, with capitalization method showing a dramatic increase in wealth concentration and the other two methods showing at best a small increase. I discuss strengths and weaknesses of different approaches. The increase in capitalization estimates since 2000 is driven by a dramatic and surprising increase in fixed income assets. There is evidence that estate tax estimates may not be sufficiently accounting for mortality improvements over time. The non-response and coverage issues in the SCF are a concern. I conclude that changing nature of top incomes and the increased importance of self-made wealth may explain difficulties in implementing each of the methods and account for why the results diverge.

JEL-codes: D31 (search for similar items in EconPapers)
Date: 2014-12
New Economics Papers: this item is included in nep-his and nep-pbe
Note: AG DAE LS PE
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Citations: View citations in EconPapers (11)

Published as Wojciech Kopczuk, 2015. "What Do We Know about the Evolution of Top Wealth Shares in the United States?," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 47-66, Winter.

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Journal Article: What Do We Know about the Evolution of Top Wealth Shares in the United States? (2015)
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