1. Measuring wealth and wealth inequality: Comparing two U.S. surveys
- Author
-
Patricia M. Andreski, Fabian T. Pfeffer, Arthur B. Kennickell, and Robert F. Schoeni
- Subjects
Labour economics ,030505 public health ,Inequality ,business.industry ,media_common.quotation_subject ,05 social sciences ,Net worth ,Public debate ,General Social Sciences ,Distribution (economics) ,Relative strength ,Article ,03 medical and health sciences ,Panel Study of Income Dynamics ,Income inequality metrics ,0502 economics and business ,Economics ,Demographic economics ,050207 economics ,0305 other medical science ,business ,Wealth concentration ,media_common - Abstract
Household wealth and its distribution are topics of broad public debate and increasing scholarly interest. We compare the relative strength of two of the main data sources used in research on the wealth holdings of U.S. households, the Survey of Consumer Finances (SCF) and the Panel Study of Income Dynamics (PSID), by providing a description and explanation of differences in the level and distribution of wealth captured in these two surveys. We identify the factors that account for differences in average net worth but also show that estimates of net worth are similar throughout most of the distribution. Median net worth in the SCF is 6% higher than in the PSID and the largest differences between the two surveys are concentrated in the 1-2 percent wealthiest households, leading to a different view of wealth concentration at the very top but similar results for wealth inequality across most of the distribution.
- Published
- 2016
- Full Text
- View/download PDF