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Wealth Inequality: Opportunity for Me or for Others?

Author

Listed:
  • Haliassos, Michael

    (Goethe University Frankfurt & CEPR)

  • Jansson, Thomas

    (Research Department, Central Bank of Sweden)

  • Karabulut, Yigitcan

    (Frankfurt School of Finance and Management)

Abstract

Early exposure to local wealth inequality and salient wealth transitions propagates both. Unique administrative data and a quasi-field experiment with exogenous as signment show that this exposure leads better-educated, butnotless-educated, households to take financial, real-asset, and self-employment risks and move up the wealth distribution. We find little evidence for responses involving better-paying, more se cure jobs, or human capital accumulation. Our findings point away from supply side factors favoring wealth accumulation by the better-educated, and instrumental variable tests using asset-return-driven shocks to local wealth inequality strengthen this interpretation. Neighborhood-level analyses suggest local exposure and social transmission are the operative propagation mechanism.

Suggested Citation

  • Haliassos, Michael & Jansson, Thomas & Karabulut, Yigitcan, 2026. "Wealth Inequality: Opportunity for Me or for Others?," Working Paper Series 467, Sveriges Riksbank (Central Bank of Sweden).
    • Handle: RePEc:hhs:rbnkwp:0467
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    File URL: https://www.riksbank.se/globalassets/media/rapporter/working-papers/2026/no.-467-wealth-inequality-opportunity-for-me-or-for-others.pdf
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    Keywords

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    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G50 - Financial Economics - - Household Finance - - - General

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