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The Origins of the Superrich: The Billionaire Characteristics Database

Author

Listed:
  • Caroline Freund

    (Peterson Institute for International Economics)

  • Sarah Oliver

    (Peterson Institute for International Economics)

Abstract

This working paper presents a new dataset on the sources of billionaire wealth and uses it to describe changes in extreme wealth in the United States, Europe, and other advanced countries. The data classify wealth as either self-made or inherited and identify the company and industry from which it comes. Among self-made billionaires, individuals are further classified as company founders, executives, politically-connected, or in finance. Data analysis shows that the superrich in the United States are more dynamic than in Europe. Just over half of European billionaires inherited their fortunes, as compared with one-third in the United States. The median age of a company of a European billionaire is nearly 20 years older than that of an American billionaire. Traditional sectors explain more than half of the rise in wealth in Europe; the financial sector and technology-related sectors together are largely responsible for the rise in US wealth. There is some evidence that rents are higher in the United States than Europe, as not only is the number of US billionaires expanding rapidly, but US billionaires are also getting richer on average over time, especially when wealth is connected to resources, nontradables, or finance.

Suggested Citation

  • Caroline Freund & Sarah Oliver, 2016. "The Origins of the Superrich: The Billionaire Characteristics Database," Working Paper Series WP16-1, Peterson Institute for International Economics.
    • Handle: RePEc:iie:wpaper:wp16-1
    as

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    References listed on IDEAS

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    1. Anders Klevmarken, & Joseph P. Lupton & Frank P. Stafford, 2003. "Wealth Dynamics in the 1980s and 1990s: Sweden and the United States," Journal of Human Resources, University of Wisconsin Press, vol. 38(2).
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    5. Caroline Freund & Sarah Oliver, 2016. "Rich People Poor Countries: The Rise of Emerging-Market Tycoons and their Mega Firms," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 7038, April.
    6. Erik Hurst & Ming Ching Luoh & Frank P. Stafford, 1998. "The Wealth Dynamics of American Families, 1984-94," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(1), pages 267-338.
    7. repec:hal:spmain:info:hdl:2441/1cu21pio6c90g9i5oedr5hnaa3 is not listed on IDEAS
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    Cited by:

    1. Carmen Giovanazzi & Vincent Victor, 2024. "Unternehmensvermoegen in Deutschland: Zur Rolle der boersennotierten Familienunternehmen," Working Papers 5, Forum New Economy.
    2. Francisco Louçã, 2021. "As time went by - why is the long wave so long?," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 749-771, July.
    3. Popov, Vladimir, 2019. "Billionaires, millionaires, inequality, and happiness," MPRA Paper 94081, University Library of Munich, Germany.
    4. Sofie R. Waltl & Robin Chakraborty, 2022. "Missing the wealthy in the HFCS: micro problems with macro implications," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(1), pages 169-203, March.
    5. Tisch, Daria & Ischinsky, Emma, 2023. "Top wealth and its historical origins: An analysis of Germany's largest privately held fortunes in 2019," MPIfG Discussion Paper 23/1, Max Planck Institute for the Study of Societies.
    6. Florida, Richard & Mellander, Charlotta, 2017. "The Geography of the Global Super-Rich," Working Paper Series in Economics and Institutions of Innovation 448, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    7. Hamermesh, Daniel S. & Leigh, Andrew K., 2022. "“Beauty too rich for use”: Billionaires’ assets and attractiveness," Labour Economics, Elsevier, vol. 76(C).
    8. Anand, Sudhir & Segal, Paul, 2017. "Who Are the Global Top 1%?," World Development, Elsevier, vol. 95(C), pages 111-126.
    9. James B. Davies & Livio Di Matteo, 2021. "Long Run Canadian Wealth Inequality in International Context," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(1), pages 134-164, March.
    10. Berenice Anne Neumann & Niklas Scheuer, 2024. "The Impact of Bequest Taxation on Wealth Inequality - Theory and Evidence," Research Papers in Economics 2024-05, University of Trier, Department of Economics.
    11. Stephan Pühringer & Matthias Aistleitner & Teresa Griesebner, 2022. "Networks of the super-rich in Austria: evidence from an explorative case study," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 238, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    12. Anand, Sudhir & Segal, Paul, 2017. "Who are the global top 1%?," LSE Research Online Documents on Economics 101816, London School of Economics and Political Science, LSE Library.
    13. Livio Di Matteo & Robert Petrunia, 2022. "Does economic inequality breed murder? An empirical investigation of the relationship between economic inequality and homicide rates in Canadian provinces and CMAs," Empirical Economics, Springer, vol. 62(6), pages 2951-2988, June.

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    More about this item

    Keywords

    wealth inequality; top 1 percent; extreme wealth; crony capitalism;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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