Working Paper: NBER ID: w23244
Authors: Timm Bünke; Markus Grabka; Carsten Schröder; Edward N. Wolff
Abstract: We provide levels of, compositions of, and inequalities in household augmented wealth – defined as the sum of net worth and pension wealth – for two countries: the United States and Germany. Pension wealth makes up a considerable portion of household wealth: about 48% in the United States and 61% in Germany. The higher share in Germany narrows the wealth gap between the two countries: While average net worth in the United States (US$337,000 in 2013) is about 1.8 times higher than in Germany, augmented wealth (US$651,000) is only 1.4 times higher. Further, the inclusion of pension wealth in household wealth reduces the Gini coefficient from 0.892 to 0.701 in the United States and from 0.765 to 0.511 in Germany.
Keywords: augmented wealth; pension wealth; wealth inequality; Germany; United States
JEL Codes: D31; H55; J32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| pension wealth inclusion (H55) | reduced wealth inequality (D31) |
| pension wealth inclusion (H55) | narrowed wealth gap between U.S. and Germany (N12) |
| pension wealth (H55) | overall household wealth (G59) |
| pension wealth (H55) | Gini coefficient (D31) |