Older or Wealthier? The Impact of Age Adjustment on Wealth Inequality.
Scandinavian Journal of Economics
Differences in individual wealth holdings are widely viewed as a driving force of economic inequality. However, as this finding relies on cross-sectional data, a concern is that older is confused with wealthier. We propose a new method to adjust for age effects in cross-sections, which eliminates wealth inequality due to age, yet preserves inequality arising from other factors. Using a new cross-country comparable database, we examine the impact of age adjustments on wealth inequality across countries and over time. We find that the most widely used method yields a substantially different picture of age-adjusted wealth inequality than our method. © 2011 The editors of The Scandinavian Journal of Economics.
|Title:||Older or Wealthier? The Impact of Age Adjustment on Wealth Inequality|
|Keywords:||Age adjustments, Gini coefficient, Life cycle, Wealth inequality|
|UCL classification:||UCL > School of Arts and Social Sciences > Faculty of Social and Historical Sciences
UCL > School of Arts and Social Sciences > Faculty of Social and Historical Sciences > Economics
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