Do the rich save more? Evidence from linked survey and administrative data

Bozio, Antoine; Emmerson, Carl; O’Dea, Cormac; Tetlow, Gemma

doi:10.1093/oep/gpx024

Cited by 12 publications

(19 citation statements)

References 23 publications

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“…76 Previous work on savings has mainly studied saving rates across income groups. The research generally finds that saving rate increases with current and permanent incomes (see for instance Dynan, Skynner, Zeldes (2004) on U.S. data, Bozio et al (2017) on UK data, Garbinti and Lamarche (2014a) on French data). Since wealth and income are strongly correlated, these conclusions are consistent with the gradient highlighted by our estimates.…”

Section: Simulating Long-term Wealth Inequalitymentioning

confidence: 99%

Accounting for Wealth-Inequality Dynamics: Methods, Estimates, and Simulations for France

Garbinti

Goupille-Lebret

Piketty

2020

Journal of the European Economic Association

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Abstract Measuring and understanding the evolution of wealth inequality is a key challenge for researchers, policy makers, and the general public. This paper breaks new ground on this topic by presenting a new method to estimate and study wealth inequality. This method combines fiscal data with household surveys and national accounts in order to provide annual wealth distribution series, with detailed breakdowns by percentiles, age, and assets. Using the case of France as an illustration, we show that the resulting series can be used to better analyze the evolution and the determinants of wealth-inequality dynamics over the 1970–2014 period. We show that the decline in wealth inequality ends in the early 1980s, marking the beginning of a rise in the top 1% wealth share, though with significant fluctuations due largely to asset price movements. Rising inequality in savings rates coupled with highly stratified rates of returns has led to rising wealth concentration in spite of the opposing effect of house price increases. We develop a simple simulation model highlighting how changes in the combination of unequal savings rates, rates of return, and labor earnings that occurred in the early 1980s generated large multiplicative effects that led to radically different steady-state levels of wealth inequality. Taking advantage of the joint distribution of income and wealth, we show that top wealth holders are almost exclusively top capital earners, and increasingly fewer are made up of top labor earners; it has become increasingly difficult in recent decades to access top wealth groups with one's labor income only.

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Section: Simulating Long-term Wealth Inequalitymentioning

confidence: 99%

Accounting for Wealth-Inequality Dynamics: Methods, Estimates, and Simulations for France

Garbinti

Goupille-Lebret

Piketty

2020

Journal of the European Economic Association

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“…Differences in wealth by parental wealth background could arise if those with wealthier parents save larger amounts. It is well documented that those with higher lifetime incomes save a larger share of their income (Dynan, Skinner and Zeldes, 2004;Bozio et al, 2017). However, in order to explain the persistence in wealth by parental background that is not explained by earnings, we want to know whether those with wealthier parents save more, for a given level of earnings.…”

Section: Do Children With Wealthier Parents Save More?mentioning

confidence: 99%

Why do wealthy parents have wealthy children?

Davenport¹,

Levell²,

Sturrock³

2021

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“…Due to data limitation [2] or different study aim [3], we observe papers taking household as the unit of analysis. Examples of these works are Dynan et al (2004) for the USA, Alan et al (2015) for Canada, Bozio et al (2011) for the UK, among others.…”

Section: Previous Empirical Studiesmentioning

confidence: 99%

Who is saving and how much? New evidence from Brazil

Bernardelli

Plassa

Paschoalino

2022

MRJIAM

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Purpose This paper aims to examine the economic and social factors that influence individual savings in Brazil based on the life cycle hypothesis (LCH). Design/methodology/approach The authors use data sourced from 2017 to 2018 Household Budget Surveys to analyse the individual savings of Brazilian aged from 18 to 80. Findings Using a conventional logistic regression model, results of this study suggest that several demographic characteristics, such as education, economic and social factors, influence individual savings in Brazil. For instance, this paper finds a non-linear relationship between age and individual savings, following LCH concepts. Originality value These data provide us with a unique opportunity to investigate the determinants of individual savings in Brazil. In examining this question, this study contributes to the literature by providing new evidence to help the current political debate about the Brazilian social security system. Against this background, social policies should be designed to promote savings, especially in groups with a lower likelihood of savings.

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Do the rich save more? Evidence from linked survey and administrative data

Cited by 12 publications

References 23 publications

Accounting for Wealth-Inequality Dynamics: Methods, Estimates, and Simulations for France

Accounting for Wealth-Inequality Dynamics: Methods, Estimates, and Simulations for France

Why do wealthy parents have wealthy children?

Who is saving and how much? New evidence from Brazil

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