scholarly journals Entrepreneurship and Household Saving

2004 ◽  
Vol 4 (1) ◽  
Author(s):  
William M. Gentry ◽  
R. Glenn Hubbard
Keyword(s):  
Wealth Distribution ◽  
Household Wealth ◽  
Demographic Variables ◽  
Wealth Accumulation ◽  
Household Saving ◽  
Consumer Finances ◽  
Saving Rates ◽  
Saving Decisions ◽  
Using Data

Abstract Using data from the 1983 and 1989 Federal Reserve Board Surveys of Consumer Finances, we quantify three findings about entrepreneurial saving decisions and their role in household wealth accumulation. First, entrepreneurial households own a substantial share of household wealth and income, and this share increases throughout the wealth distribution and the income distribution. Second, the portfolios of entrepreneurial households, even wealthy ones, are very undiversified, with the bulk of assets held within active businesses. Third, wealth-income ratios and saving rates are higher for entrepreneurial households even after controlling for age and other demographic variables. Taken together, these findings suggest that studies of household saving decisions in general and of the savings decisions of wealthy or high-income households in particular have paid insufficient attention to the role of entrepreneurial decisions and their role in wealth accumulation.

Dual private pension households and the distribution of wealth in the United States

2002 ◽  
Vol 1 (2) ◽  
pp. 131-155 ◽  
Author(s):  
NANCY AMMON JIANAKOPLOS ◽  
VICKIE L. BAJTELSMIT
Keyword(s):  
United States ◽  
Wealth Distribution ◽  
The United States ◽  
Household Wealth ◽  
Private Pension ◽  
Private Pensions ◽  
Net Worth ◽  
Consumer Finances ◽  
Using Data ◽  
The Impact

Using data from the 1998 Survey of Consumer Finances, this paper examines the impact of dual private pension households on the distribution of household wealth in the United States. This paper builds on three lines of previous research: inquiries into ‘assortative mating’, i.e., the tendency for people with similar characteristics to marry; studies emphasizing the importance of pensions as a component of household wealth; and recent research examining how wives' earnings alter the distribution of household income. Evidence of ‘assortative private pensions’, i.e., the tendency for people with private pensions to be married to people with private pensions, is presented. Estimates of the expected value of private pension and social security wealth are added to measures of household non-retirement net worth to obtain the value household wealth. These data indicate that wives' private pensions in dual private pension households contribute marginally to greater equality in the wealth distribution.

scholarly journals The Relationship Between Age and Happiness Varies by Income

2021 ◽  
Author(s):  
Dimiter Toshkov
Keyword(s):  
Income Distribution ◽  
Old Age ◽  
European Social Survey ◽  
Demographic Variables ◽  
Social Survey ◽  
Middle Income ◽  
The Subject ◽  
Using Data ◽  
The Relationship

AbstractThe link between age and happiness has been the subject of numerous studies. It is still a matter of controversy whether the relationship is U-shaped, with happiness declining after youth before bouncing back in old age, or not. While the effect of age has been examined conditional on income and other socio-demographic variables, so far, the interactions between age and income have remained insufficiently explored. Using data from the European Social Survey, this article shows that the nature of the relationship between age and happiness varies strongly with different levels of relative income. People in the lowest decile of the income distribution experience a ‘hockey stick’: a deep decline in self-reported happiness until around age 50–55 and a small bounce back in old age. The classic U-curve is found mostly in the middle-income ranks. For people at the top of the income distribution, average happiness does not vary much with age. These results demonstrate the important role of income in moderating the relationship between age and happiness.

scholarly journals Religious Beliefs And Wealth Accumulation

2012 ◽  
Vol 10 (7) ◽  
pp. 407
Author(s):  
E. Anne York ◽  
Marilyn Dutton
Keyword(s):  
Quantile Regression ◽  
Religious Belief ◽  
Wealth Distribution ◽  
Household Wealth ◽  
Wealth Accumulation ◽  
Font Size ◽  
Net Worth ◽  
The Bible ◽  
Precise Measure ◽  
The Relationship

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none;" class="MsoNormal"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">One of the more interesting findings in the research on household wealth is the relationship between religion and wealth accumulation. In contrast to previous studies that use denominational affiliation, we use a more precise measure of religious belief constructed from responses to survey questions regarding interpretation of the Bible.<span style="mso-spacerun: yes;"> </span>Regression results indicate that households with more literalist Biblical beliefs have lower net worth overall.<span style="mso-spacerun: yes;"> </span>Additional analysis using quantile regression reveals that this relationship holds only for the upper half of the wealth distribution.<span style="mso-spacerun: yes;"> </span>There is no relationship at lower levels of wealth.<span style="mso-spacerun: yes;"> </span>Finally, while more literalist households are less likely to have an investment account or to have ever received an inheritance, they are more likely to own a home and to have a positive net worth.</span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>

Federal Wealth Policy and the Perpetuation of White Supremacy

2021 ◽  
pp. 003464462110008
Author(s):  
Robert B. Williams
Keyword(s):  
White Supremacy ◽  
Household Wealth ◽  
Wealth Accumulation ◽  
Survey Of Consumer Finances ◽  
The Past ◽  
Consumer Finances ◽  
Tax Exemptions ◽  
Tax Deductions ◽  
Tax Benefits ◽  
The U.S

Since its inception, the U.S. government has strongly promoted the expansion of White wealth. These past policies have created the current wealth gaps in which White households typically hold >10 times the wealth held by Black or Latinx households. The tradition continues today. Using nine tax deductions, the federal government currently supports household wealth accumulation by nearly $640 billion annually. Although they make no overt mention of race, these tax exemptions are designed specifically to help wealthier households. Using evidence from the Survey of Consumer Finances, this article estimates the racial shares of these tax benefits and shows a clear pattern of racial favoritism. In addition, repeated efforts to eliminate the estate and gift taxes mean more intergenerational wealth is tax-exempted. As in the past, our current federal wealth policies are promoting White supremacy.

scholarly journals Impact of Economic Shocks on Cumulative Advantage Processes: Recession, Recovery, and Trajectories of Inequality

2021 ◽  
Vol 5 (Supplement_1) ◽  
pp. 508-508
Author(s):  
Stephen Crystal
Keyword(s):  
Potential Role ◽  
Population Level ◽  
Survey Of Consumer Finances ◽  
Subsequent Recovery ◽  
The Great Recession ◽  
Consumer Finances ◽  
Age Cohort ◽  
Using Data ◽  
The Life Course

Abstract This study compares the effect of the 2008 recession and subsequent recovery across generational cohorts by evaluating age-cohort trajectories of income inequality. Using data from the 2007 to 2016 waves of the Survey of Consumer Finances, we examine the trajectory of inequality for the overall population and by cohort in years spanning the Great Recession and subsequent recovery. We find that increases in per-capita income and wealth observed at the population-level during the recovery were not reflected among households below the median, leading to increasing inequality. Within cohorts, we observe growing inequality within cohorts in their primary working years. Findings are consistent with a model of integrative cumulative dis/ advantage, which predicts increasing within-cohort inequality over the life course influenced both by persistent micro- and macro-level processes of increasing heterogeneity. Our analyses highlight the potential role of extreme business cycle fluctuations, booms and busts, to exacerbate this underlying process.

Understanding the Unequal Post-Great Recession Wealth Recovery for American Families

2017 ◽  
Vol 17 (4) ◽  
Author(s):  
Sisi Zhang ◽  
Shuaizhang Feng
Keyword(s):  
Great Recession ◽  
Wealth Distribution ◽  
Wealth Accumulation ◽  
Survey Of Consumer Finances ◽  
The Great Recession ◽  
Consumer Finances ◽  
Level Data ◽  
Family Level ◽  
The Mean ◽  
Race Ethnicity

AbstractThe wealth of US families had not returned to its prerecession level by 2013, six years after the onset of the Great Recession. This article provides a comprehensive analysis of this slow and uneven episode of wealth recovery, using family-level data from the Survey of Consumer Finances 1989–2013. Both descriptive results and regressions controlling for life cycle wealth accumulation show that families of color and less-educated families are falling behind in wealth recovery because their wealth portfolios are concentrated in housing, which has recovered very slowly. The decomposition results suggest that homeownership plays a significant role in explaining wealth disparity by race, ethnicity, and education at the mean and bottom of the wealth distribution. Understanding the uneven wealth recovery has important implications for redesigning asset-related policies and narrowing wealth gaps.

scholarly journals Crisis Tendencies in Household Savings in the Countries with Developed Market Economy and Russia

2012 ◽  
pp. 237-240
Author(s):  
A. Kostomarova
Keyword(s):  
Comparative Analysis ◽  
Market Economy ◽  
Economic Crisis ◽  
Household Savings ◽  
Consumption Behavior ◽  
Household Saving ◽  
Current Economic Crisis ◽  
Saving Rates

The article looks at the dynamics of household saving rates and savings in terms of numbers in some of the leading world economies during the current economic crisis, makes comparative analysis with Russia. The author examines the reasons for changes in peoples’ behavior during crisis, including the influence of pessimistic opinion regarding expenses and savings, underlines a growing role of savings «for a rainy day», describes the model of consumption behavior.

The Role of Wealth Transformations: An Application to Estimating the Effect of Tax Incentives on Saving

2006 ◽  
Vol 5 (1) ◽  
Author(s):  
Karen M. Pence
Keyword(s):  
Tax Incentives ◽  
Household Wealth ◽  
Logarithmic Transformation ◽  
Percentage Change ◽  
Median Regression ◽  
Household Saving ◽  
Hyperbolic Sine ◽  
Corporate Profits ◽  
Inverse Hyperbolic Sine

AbstractResearchers may want to estimate the percentage change of a variable, such as household wealth or corporate profits, that takes on economically significant nonpositive values. Using the logarithmic transformation, however, requires discarding observations with nonpositive values. This paper describes a possible solution to this problem-the inverse hyperbolic sine transformation-and shows how to implement this transformation optimally in the case of median regression. As an illustration of the usefulness of this transformation, I revisit a specification sometimes used to estimate the effect of tax incentives on household saving.

Retirement plans and saving decisions: the role of information and education

2006 ◽  
Vol 5 (1) ◽  
pp. 45-67 ◽  
Author(s):  
ROBERT L. CLARK ◽  
MADELEINE B. d'AMBROSIO ◽  
ANN A. McDERMED ◽  
KSHAMA SAWANT
Keyword(s):  
Financial Education ◽  
Optimal Decision ◽  
Financial Mathematics ◽  
Retirement Plans ◽  
Savings Behavior ◽  
Adequate Knowledge ◽  
Saving Decisions ◽  
Using Data ◽  
Optimal Decision Making

Increasingly, individuals are being required to take more responsibility for their own retirement saving. Lifecycle theories of resource allocation provide a framework to examine work, retirement, consumption, and saving decisions. However, optimal decision making requires adequate knowledge of financial mathematics, risk and return properties of investments, and expectations concerning wage growth and tax policy. This paper explores the response of individuals to financial education seminars. Using data from three surveys of participants in seminars offered by TIAA-CREF, we estimate changes in retirement goals and saving behavior after the respondents have attended a seminar which discusses keep components of saving for retirement. The results indicate that financial education can produce significant changes in how individuals think and plan for retirement. Throughout the analysis, women were found to be more responsive to the seminar and were more likely to raise their desired retirement age, increase their target income replacement goal, and alter their savings behavior.

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