Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/82574 
Year of Publication: 
2012
Series/Report no.: 
Working Paper No. 2012:1
Publisher: 
Uppsala University, Department of Economics, Uppsala
Abstract: 
Who is wealthy? This paper presents empirical estimates of household movements into and out of the top percents of the wealth distribution over individual life cycles. There are life-cycle motives and precautionary motives for wealth accumulation. The opportunities to accumulate wealth create incentives for education, work effort, and entrepreneurship. We would expect considerable wealth mobility over the life cycle if the life-cycle motives and incentives to accumulate are strong and affect behavior. The data are from an administrative Swedish source that retains wealth information from tax registers. The data are unique, they follow a large sample of households over almost 40 years. There is substantial mobility when we follow individual households over long enough time spans. We find that wealth mobility increased until the end of the 1980s and then started to decrease. Age-wealth probability profiles are consistent with life-cycle motives for wealth accumulation. There are also limited precautionary motives for wealth accumulation when households experience income uncertainty.
Subjects: 
intragenerational wealth mobility
wealth durations
life-cycle motives
precautionary motives
panel data
JEL: 
D14
D31
D91
H24
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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