Working Paper: NBER ID: w25462
Authors: Gabriel Zucman
Abstract: This article reviews the recent literature on the dynamics of global wealth inequality. I first reconcile available estimates of wealth inequality in the United States. Both surveys and tax data show that wealth inequality has increased dramatically since the 1980s, with a top 1% wealth share around 40% in 2016 vs. 25–30% in the 1980s. Second, I discuss the fast growing literature on wealth inequality across the world. Evidence points towards a rise in global wealth concentration: for China, Europe, and the United States combined, the top 1% wealth share has increased from 28% in 1980 to 33% today, while the bottom 75% share hovered around 10%. Recent studies, however, may under-estimate the level and rise of inequality, as financial globalization makes it increasingly hard to measure wealth at the top. I discuss how new data sources (leaks from financial institutions, tax amnesties, and macroeconomic statistics of tax havens) can be leveraged to better capture the wealth of the rich.
Keywords: wealth inequality; globalization; tax havens; wealth measurement; financial globalization
JEL Codes: D31; H26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Financial globalization (F65) | Wealth concentration (D31) |
| Wealth concentration (D31) | Wealth inequality in the United States (D31) |
| Wealth concentration (D31) | Global wealth share of top 1% (F62) |
| Measurement methodologies (C80) | True wealth distribution (D31) |