Wealth and Economic Mobility
The growing concern about economic inequality voiced by scholars, policymakers and journalists has been addressed primarily to inequality of income. And with good reason: as noted throughout this volume, studies confirm that over the last three decades there has been a marked rise in income inequality in the United States.
In tracking trends in economic inequality, less attention has been given to the wealth gap and its relationship to economic mobility. Yet any full consideration of economic well-being, inequality or economic mobility must include careful attention to wealth.
Understanding wealth is important to fully understand economic mobility in the United States, especially the effect of wealth on economic mobility across generations. Because the incomes of parents and children are highly correlated, it is important to ask whether there is a similar correlation between the wealth of parents and their children and, if so, what the modes of wealth transmission might be.
- Figure 1: Percent of Wealth Held by Various Percentile Groups, Selected Years 1989-2004
- Figure 2a: Percent of Several Financial Assets Held by Various Wealth Groups, 2004
- Figure 2b: Percent of Several Non-Financial Assets Held by Various Wealth Groups, 2004
- Figure 3a: Household Debt as Percent of Disposable Income, Selected Years 1949-2005
- Figure 3b: Household Debt as a Percent of Assets, Selected Years 1949-2005
- Figure 4: Percent of Debt Incurred for Various Purposes, Selected Years 1995-2004
- Figure 5: Percent of Families Holding Debt by Type of Debt and Income Group, 2004
- Figure 6: Bankruptcy Rates per 1,000 People between Ages 18 and 65, 1980-2007
- Figure 7: Percent of Households with Debt-to-Income Ratios Greater than 40 Percent by Income Quintile, 2004
