Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/311203 
Year of Publication: 
2025
Series/Report no.: 
IMFS Working Paper Series No. 216
Publisher: 
Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS), Frankfurt a. M.
Abstract: 
We provide evidence for a new propagation mechanism of wealth inequality and mobility. Using unique administrative data and a quasi-field experiment of exogenous assignment, we find that educated entrants, faced with greater local wealth inequality and salient cases of wealth mobility, take financial, real, and self-employment risks and reach higher positions in the wealth distribution, while the less educated do not. This is driven by poorer communities with more salient cases of wealth mobility, consistent with peer exposure rather than supply-side effects. We find no evidence for other channels, such as obtaining higher-paying more secure jobs, relocating, or reducing debt.
Subjects: 
Household finance
wealth inequality
education
opportunity
refugees
JEL: 
G5
E21
E44
D31
D1
Document Type: 
Working Paper

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