Research on wealth inequality and accumulation and the data upon which it relies have expanded substantially in the twenty-first century. While the field has experienced rapid growth, conceptual and methodological challenges remain. We begin by discussing two major unresolved methodological concerns facing wealth research: how to address challenges to causal inference posed by wealth’s cumulative nature and how to operationalize net worth, given its highly skewed nature. To underscore the need for continued empirical attention to net worth, we review trends in wealth levels and inequality and evaluate wealth’s distinctiveness as an indicator of social stratification. Next, we provide an overview of data sources available for wealth research. We then review recent empirical evidence on the effects of wealth on other social outcomes, as well as research on the determinants of wealth. We close with a list of promising avenues for future research on wealth, its causes, and its consequences.

Highly skilled parents deploy distinct strategies to cultivate their children’s development, but little is known about how parental cognitive skills interact with metropolitan opportunity structures and residential mobility to shape a major domain of inequality in children’s lives: the neighborhood. We integrate multiple literatures to develop hypotheses on parental skill-based sorting by neighborhood socioeconomic status and public school test scores, which we test using an original follow-up of the Los Angeles Family and Neighborhood Survey. These data include more than a decade’s worth of residential histories for households with children that are linked to census, geographic information system, and educational administrative data. We construct discrete-choice models of neighborhood selection that account for heterogeneity among household types, incorporate the unique spatial structure of Los Angeles County, and include a wide range of neighborhood factors. The results show that parents’ cognitive skills interact with neighborhood socioeconomic status to predict residential selection after accounting for, and confirming, the expected influences of race, income, education, housing market conditions, and spatial proximity. Among parents in the upper/upper-middle class, cognitive skills predict sorting on average public school test scores rather than neighborhood socioeconomic status. Overall, we reveal skill-based contextual sorting as an overlooked driver of urban stratification.

Although socioeconomic disparities in cognitive ability emerge early in the life course, most research on the consequences of living in a disadvantaged neighborhood has focused on school-age children or adolescents. In this study, we outline and test a theoretical model of neighborhood effects on cognitive development during early childhood that highlights the mediating role of exposure to neurotoxic lead. To evaluate this model, we follow 1,266 children in Chicago from birth through school entry and track both their areal risk of lead exposure and their neighborhoods' socioeconomic composition over time. With these data, we estimate the joint effects of neighborhood poverty and environmental lead contamination on receptive vocabulary ability. We find that sustained exposure to disadvantaged neighborhoods reduces vocabulary skills during early childhood and that this effect operates through a causal mechanism involving lead contamination.

Suburbanization helped fuel neighborhood and school segregation during the twentieth century, but many American suburbs have dramatically diversified since. How do White suburbanites respond? With residential mobility declining and educational choice increasing, White suburban families may emulate their core-city counterparts, leveraging school enrollment to buffer their children from disadvantaged minorities living nearby. Yet recent research suggests proximate nontraditional school options (e.g., magnet, charter, private) are a key ingredient facilitating this minority avoidance strategy, and they are scarce in the suburbs. I propose that strong racial preferences spur White suburban families living amongst Black and Latino children to enact them even in unfavorable circumstances: by sending children long distances to nonassigned schools. Logistic regressions employing Los Angeles Family and Neighborhood Survey data on over 2,000 children linked to administrative data confirm this expectation. Spatial stratification research should supplement its longstanding focus on city-to-suburb residential flows and core-city educational flows out of traditional public schools with sharper scrutiny of suburban school sorting as a potential third path of segregation. This selection process may reveal racial preferences to be even stronger—and educational opportunity structures more malleable—than often assumed.

Since the early 2000s, educational evaluation research has primarily centered on teachers’, rather than schools’, contributions to students’ academic outcomes due to concerns that estimates of the latter were smaller, less stable, and more prone to measurement error. We argue that this disparity should be reduced. Using administrative data from three cohorts of Massachusetts public school students ( N = 123,261) and two-level models, we estimate middle schools’ value-added effects on eighth-grade and 10th-grade math scores and, importantly, a non–test score outcome: 4-year college enrollment. Comparing our results to teacher-centered studies, we find that school effects (encompassing both teaching- and nonteaching-related factors) are initially smaller but nearly as stable and perhaps more persistent than are individual teacher effects. Our study motivates future research estimating the long-term effects of both teachers and schools on a wide range of outcomes.