Demographic Change and Wealth Inequality: Global Evidence

This study explores the effect of various demographic features on wealth share using yearly data for 43 countries. Empirical results from quantile regressions indicate that besides macroeconomic and institutional factors, population ageing and the high size of working population exhibit some mitigating effects on wealth inequality at lower quantiles and the opposite effect at high quantiles. Whereas at the quantile above 75, rising share of working age population, population growth and high fertility rate may help contribute to wealth share equalisation. These finding implies that efficient redistribution strategies depend not only on the level of development but also on the stage of the demographic transition. Accordingly, improving access to education and decent jobs can help fight inequality in relatively young population context while labour market adjustment through government effectiveness could lead to wealth inequality reduction in relatively old population context.