The Level and Distribution of Global Household Wealth

62 Pages Posted: 17 Nov 2009 Last revised: 16 Nov 2024

See all articles by James B. Davies

James B. Davies

University of Western Ontario - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Susanna Sandström

UN World Food Programme

Anthony Shorrocks

United Nations - World Institute for Development Economics Research (UNU/WIDER)

Edward N. Wolff

New York University (NYU) - Department of Economics; National Bureau of Economic Research (NBER); Bard College - Levy Economics Institute

Date Written: November 2009

Abstract

We estimate the level and distribution of global household wealth. The levels of assets and debts for 39 countries are measured using household balance sheet and survey data centred on the year 2000. The determinants of mean financial assets, non-financial assets, and liabilities are studied empirically, and the results used to estimate average wealth holdings for countries lacking direct evidence. Data on the pattern of household distribution of wealth are assembled for 20 countries, which together account for 59 per cent of the global population and 75 per cent of global wealth. The observed relation between wealth and income distribution in these 20 countries allows estimates of wealth inequality to be produced for many other nations. Combining the figures for individual countries reveals that net worth averaged US$44,024 per adult in PPP terms across the globe. Wealth of US$8,635 was needed to be in the top half of the global distribution, and US$518,364 to be in the top one per cent. The top 10 per cent owned 71 per cent of world wealth, and the Gini coefficient for the global distribution of wealth is estimated to be 0.802, indicating greater inequality than that observed in the global distribution of consumption or income.

Suggested Citation

Davies, James and Sandström, Susanna and Shorrocks, Anthony and Wolff, Edward N., The Level and Distribution of Global Household Wealth (November 2009). NBER Working Paper No. w15508, Available at SSRN: https://ssrn.com/abstract=1505831

James Davies

University of Western Ontario - Department of Economics ( email )

1151 Richmond Street
Suite 2
London, Ontario N6A 5B8
Canada

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Susanna Sandström

UN World Food Programme ( email )

United States

Anthony Shorrocks

United Nations - World Institute for Development Economics Research (UNU/WIDER) ( email )

Katajanokanlaituri 6B
Helsinki, FIN-00160
Finland

Edward N. Wolff (Contact Author)

New York University (NYU) - Department of Economics ( email )

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New York, NY 10011
United States
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National Bureau of Economic Research (NBER)

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Bard College - Levy Economics Institute

Blithewood
Annandale-on-Hudson, NY 12504
United States

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