Is There Wealth Stability Across Generations in the U.S.? Evidence from Panel Study, 1984-2017

46 Pages Posted: 17 Jun 2019 Last revised: 29 Jan 2021

See all articles by Jermaine Toney

Jermaine Toney

Rutgers University ; Cornell University

Date Written: January 29, 2021

Abstract

The net wealth accumulation of (grand)parents appears to be strongly determinative of the net wealth holdings of their adult (grand)children. While these general features are understood, few details are known about the persistence of wealth components that determine overall portfolio outcomes and their variance. Using longitudinal data, I show that grandparents and parents figure prominently, not only in net wealth, but also in a range of household portfolio allocations (risky assets, safe assets, non-financial assets) of the current generation. Meanwhile, I find that there is persistence in intergroup disparities in wealth components. I find consistent results whether I examine intergenerational wealth correlation before or after the Great Recession of 2007-2009. These findings shed light on the connection between intergenerational networks, asset building, and intergroup disparities in wealth.

Keywords: stratification economics, intergenerational mobility, household portfolio allocations

JEL Classification: Z13, D31, D64, J15

Suggested Citation

Toney, Jermaine, Is There Wealth Stability Across Generations in the U.S.? Evidence from Panel Study, 1984-2017 (January 29, 2021). Available at SSRN: https://ssrn.com/abstract=3373778 or http://dx.doi.org/10.2139/ssrn.3373778

Jermaine Toney (Contact Author)

Rutgers University ( email )

33 Livingston Avenue
New Brunswick, NJ 08901-1982

Cornell University

Warren Hall
Ithaca, NY 14853
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
37
Abstract Views
469
PlumX Metrics