The Level and Distribution of Global Household Wealth

Abstract

We estimate the level and distribution of global household wealth. The levels of assets and debts for 39 countries are measured using household balance sheet and survey data centred on the year 2000. The determinants of mean financial assets, non-financial assets, and liabilities are studied empirically, and the results used to estimate average wealth holdings for countries lacking direct evidence. Data on the pattern of household distribution of wealth are assembled for 20 countries, which together account for 59 per cent of the global population and 75 per cent of global wealth. The observed relation between wealth and income distribution in these 20 countries allows estimates of wealth inequality to be produced for many other nations. Combining the figures for individual countries reveals that net worth averaged US$44,024 per adult in PPP terms across the globe. Wealth of US$8,635 was needed to be in the top half of the global distribution, and US$518,364 to be in the top one per cent. The top 10 per cent owned 71 per cent of world wealth, and the Gini coefficient for the global distribution of wealth is estimated to be 0.802, indicating greater inequality than that observed in the global distribution of consumption or income.

Multidimensional Measurement of Richness: Theory and an Application to Germany

“…Typical features of wealth distributions are described by Jenkins and Jäntti (2005). Especially, wealth is highly unequally distributed (Davies, Sandström, Shorrocks, and Wolff, 2009) and is positively but not perfectly correlated with income (see OECD, 2008;Davies, Sandström, Shorrocks, and Wolff, 2009;Wolff and Zacharias, 2009). In addition, wealth and income represent distinct dimensions of satisfaction with life (see D'Ambrosio, Frick, and Jäntti, 2009).…”

The Missing Wealth of Nations: Are Europe and the U.S. net Debtors or net Creditors?*

“…The rich world shifts into the black as long as it owns more than half the globally unrecorded assets. Available Swiss data suggest that it is a lower bound, which is hardly surprising since residents of rich countries own 80% of recorded world wealth (Davies et al, 2011). Remember also that most of the unrecorded assets are Luxembourg, Irish, and Cayman fund shares.…”

“…In 2008, by my estimate, unrecorded household assets amounted to 7.3% of world GDP. Total household financial assets stood at 120% of world GDP (Davies et al, 2011) so unrecorded household assets amounted to 6% of total household financial assets. Europe includes the 16 members of the eurozone as at the end of 2010, five additional European countries (the UK, Norway, Sweden, Denmark and Switzerland), and three non-European countries (Australia, New Zealand, and Canada).…”

Less Income Inequality and More Growth – Are They Compatible? Part 3. Income Redistribution via Taxes and Transfers Across OECD Countries

“…In the United Kingdom, for instance, the Council Tax amounts to 6% of income for those in the bottom fifth, but only 2% for those in the top fifth (ONS, 2010). A similar pattern is found in Canada (Chawla and Wannel, 2003) and in the United States (Davies et al, 2009). One explanation is that recurrent taxes on immovable property are often a sub-national government tax whose amount should reflect the benefit of local public services (waste collection, etc.)…”