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Built, Not Born: How Education Predicts Billionaire Wealth

Author

Listed:
  • Kendzia, Michael Jan

    (Zurich University of Applied Sciences (ZHAW))

  • Neville, Tomas

    (Zurich University of Applied Sciences (ZHAW))

  • Gadgil, Maya

    (Zurich University of Applied Sciences (ZHAW))

Abstract

This study investigates the key drivers behind the wealth accumulation of America’s 100 richest self-made billionaires, using data from the Forbes 400 list. Focusing on five individual and contextual factors—education, innovation, networks, inheritance, and geographic origins—the research applies regression analysis to evaluate the statistical significance and predictive power of each. The results show that education, especially from elite institutions, is a strong and consistent predictor of wealth. Innovation, measured by patents and entrepreneurial activity, shows the strongest correlation, emphasizing its centrality in modern wealth creation. Networks—both personal and professional—also play a crucial role, though they interact with other variables. In contrast, inheritance and geographic origins, while influential, exhibit weaker statistical associations. Notably, 89% of the cohort received little or no family funding, underscoring the importance of individual agency and external investment. The findings challenge assumptions about inherited wealth and highlight the role of human capital, innovation ecosystems, and urban opportunity structures in financial success.

Suggested Citation

  • Kendzia, Michael Jan & Neville, Tomas & Gadgil, Maya, 2025. "Built, Not Born: How Education Predicts Billionaire Wealth," IZA Discussion Papers 17994, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp17994
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    References listed on IDEAS

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    1. Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.
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    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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