2019
DOI: 10.1111/1475-5890.12202
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Intergenerational Differences in Income and Wealth: Evidence from Britain

Abstract: How do average levels of income and wealth differ in Britain for those born between the 1930s and 1980s? Those in the 1980s cohort are the first post‐war generation not to have higher median incomes in their early 30s than those born a decade earlier, though they have much higher incomes than those born in the 1960s and earlier. Median wealth for those in the 1980s cohort is 20 per cent lower in their early 30s than it was for those born in the 1970s. This is driven by lower property wealth and homeownership: … Show more

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Cited by 20 publications
(26 citation statements)
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References 24 publications
(15 reference statements)
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“…Another important asset that we do not model is housing. Nearly four out of five of individuals in their 50s and 60s are owner-occupiers, though the homeownership rate among generations born more recently is, at least for now, strikingly lower (Cribb, 2019). The purchase of owner-occupied housing, and the timing of this over the life cycle, could have important implications for the timing of retirement saving.…”
Section: Housingmentioning
confidence: 99%
“…Another important asset that we do not model is housing. Nearly four out of five of individuals in their 50s and 60s are owner-occupiers, though the homeownership rate among generations born more recently is, at least for now, strikingly lower (Cribb, 2019). The purchase of owner-occupied housing, and the timing of this over the life cycle, could have important implications for the timing of retirement saving.…”
Section: Housingmentioning
confidence: 99%
“…Those born after 1980 were the first post-war generation to have lower average household incomes and lower levels of wealth than the generation born a decade earlier. 697 This was due to a combination of lower average earnings and a fall in home ownership due to rising house prices and stricter lending. Lower earnings experienced by this group reflect the poor pay growth in the UK in their formative career years: born in the 1980s, most entered the labour market between 2000 and 2010 and started their careers in lower-ranking occupations than their predecessors.…”
Section: Employment and Intergenerational Inequalitymentioning
confidence: 99%
“…The characteristics of birth cohorts, such as risk-taking, inheritance motives, or consumption habits, may also differ, and may affect the propensity to save and to gain wealth. On the other hand, changes in the structure of households can also affect the age profile of wealth (Cribb, 2019;Crossley et al, 2016). Thus, based on the above, our first research hypothesis is the following: long-term wealth differences have increased among cohorts.…”
Section: Finnish Context and Framework Of Analysismentioning
confidence: 99%