Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/309421 
Year of Publication: 
2025
Series/Report no.: 
ifso working paper No. 45
Publisher: 
University of Duisburg-Essen, Institute for Socio-Economics (ifso), Duisburg
Abstract: 
This paper estimates rates of return on wealth across gross wealth groups by matching individual-level survey data with macroeconomic return data for Germany. Using machine learning for more detailed financial asset categories, we find that the average nominal rate of return on gross assets for the bottom 50% is 1%, for the upper middle 40% it amounts to about 5.4%, and for the top 10% to 6.3%. Adjusted for inflation and interest payments on loans, the average rate of return for the bottom 50% is negative. We show that an intersectional analysis of wealth returns matters, with certain socio-economic characteristics such as gender or migration background predicting the position of individuals in the wealth distribution.
Creative Commons License: 
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Document Type: 
Working Paper

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