Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216394 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13082
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
The recent literature has argued for high concentration of earnings, differences in rates of return on assets and bequests as potential determinants of the high level of wealth concentration in the US. Analyzing the joint distribution of earnings, capital income and net worth, we find evidence for excess returns on investment among the highest income groups. Nonetheless, concentration of labor earnings is the primary source of wealth concentration in the US. This finding reflects the high correlation between earnings and wealth in the data, as well as the fact that earnings are a major source of income for top income and wealth groups.
Subjects: 
wealth inequality
rate of return heterogeneity
income risk
bequests
JEL: 
D31
H24
O54
Document Type: 
Working Paper

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