The 0.0003 Percent: Short-Run Dynamics of Extreme Wealth in America

Abstract

This paper examines short-run dynamics and changing sources of wealth among the Forbes 400 annual list of wealthiest individuals in the US, before and after the 2008-9 financial crisis. We analyze the interaction of growth of wealth with education, age, and being self-made versus inheriting wealth. We nd evidence of conditional convergence of wealth within the group. The wealth of the self-made grew faster than their counterparts, though less so after the crisis. Those with advanced degrees had higher pre-crisis growth of wealth. Mobility in and out of the group was higher pre-crisis.

Keywords: Forbes 400, financial crisis, wealth inequality, higher education, mobility

JEL Classification: D31, I24, J11