Income and Wealth Over the Life Cycle Evidence from Panel Data

32 Pages Posted: 14 Mar 2011

See all articles by Rob J. M. Alessie

Rob J. M. Alessie

University of Groningen; Netspar; Tilburg University - Center for Economic Research (CentER)

Annamaria Lusardi

George Washington University - Department of Accountancy; National Bureau of Economic Research (NBER)

Trea Aldershof

affiliation not provided to SSRN

Date Written: 1997

Abstract

In this paper we examine household wealth and income in the Netherlands using data from the Socio Economic Panel (SEP) in the period 198789. We provide an evaluation of the quality of the data and some simple statistics which describe the behavior of wealth, saving, and income over the life cycle. We find there is substantial heterogeneity in the behavior of households, and wealth holdings vary substantially even among the same age group. By exploiting the panel feature of the SEP, we derive saving from first differencing wealth. We find that a sizeable fraction of households do not dissave when old and we find some evidence in favor of the bequest motive.

Suggested Citation

Alessie, Rob J. M. and Lusardi, Annamaria and Aldershof, Trea, Income and Wealth Over the Life Cycle Evidence from Panel Data (1997). Review of Income and Wealth, Vol. 43, No. 1, pp. 1-32, 1997. Available at SSRN: https://ssrn.com/abstract=1782500 or http://dx.doi.org/10.1111/j.1475-4991.1997.tb00198.x

Rob J. M. Alessie (Contact Author)

University of Groningen ( email )

P.O. box 800
9700 AV Groningen
Netherlands
050-3637240 (Phone)

HOME PAGE: http://members.chello.nl/~r.j.m.alessie

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

HOME PAGE: http://www.netspar.nl

Tilburg University - Center for Economic Research (CentER)

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Annamaria Lusardi

George Washington University - Department of Accountancy ( email )

George Washington University School of Business
Washington, DC 20052
United States

HOME PAGE: http://business.gwu.edu/profiles/annamaria-lusardi/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Trea Aldershof

affiliation not provided to SSRN

No Address Available

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