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Spatial wealth inequality in the United States: theory and evidence

Author

Listed:
  • Kemeny, Thomas
  • Connor, Dylan Shane
  • Suss, Joel
  • Xie, Siqiao
  • Jang, Jiwon
  • Gu, Zhining

Abstract

Despite extensive research on spatial inequality, the geography of wealth remains understudied. We develop a theoretical framework explaining why wealth’s spatial distribution differs from income’s and how local advantages create self-reinforcing dynamics. Using novel data tracking household net worth across 722 U.S. commuting zones from 1960-2020, we establish five stylized facts. Wealth is 60-70% more spatially concentrated than income, with patterns distinct from income and housing values. Post-1980 increases in between-place inequality reflect places changing positions rather than divergence. Within places, bottom 50% wealth shares declined nationwide. These patterns reveal feedback mechanisms compounding spatial advantages, highlighting welfare disparities exceeding income-focused research.

Suggested Citation

  • Kemeny, Thomas & Connor, Dylan Shane & Suss, Joel & Xie, Siqiao & Jang, Jiwon & Gu, Zhining, 2026. "Spatial wealth inequality in the United States: theory and evidence," LSE Research Online Documents on Economics 137667, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:137667
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    File URL: https://researchonline.lse.ac.uk/id/eprint/137667/
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    JEL classification:

    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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