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COVID-19 pandemic and the reconcentration of wealth

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  • Bordeerath, Bordin

Abstract

This paper shows that the pandemic increased wealth concentration among billionaires, particularly among billionaire heirs—whose wealth accumulation is associated with slower economic recovery—in countries with weak institutions. This finding is based on hand-collected Forbes data on billionaire wealth across 65 countries from 2017 to 2020. The growth rate of billionaires’ wealth as a share of GDP increased by 38 percentage points during the pandemic. Billionaires are then classified as founders if they are self-made, and as heirs if they inherited corporate control from their families. Further evidence shows that the wealth share of heirs grew more rapidly than that of founders in countries with weak financial institutions and low openness to trade and capital flows. By contrast, the opposite occurred in countries where these institutions are strong. These results underscore the role of institutions in curbing the rise of billionaire heirs during the pandemic.

Suggested Citation

  • Bordeerath, Bordin, 2025. "COVID-19 pandemic and the reconcentration of wealth," Economic Systems, Elsevier, vol. 49(4).
    • Handle: RePEc:eee:ecosys:v:49:y:2025:i:4:s093936252500038x
    DOI: 10.1016/j.ecosys.2025.101326
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    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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