Less Income Inequality and More Growth – Are they Compatible? Part 6. The Distribution of Wealth [E-Book] / Kaja Bonesmo Fredriksen
Bonesmo Fredriksen, Kaja.
Paris : OECD Publishing, 2012
23 p. ; 21 x 29.7cm.
OECD Economics Department Working Papers ; 929
Full Text
The wealth distribution within OECD countries is very concentrated and much more so than the income distribution. Wealth dispersion is especially high in the United States and Sweden. The latter illustrates that the most wealth unequal countries are not necessarily the most income unequal. Wealth inequality came down since the beginning of the 20th century until the 1970s, but has since been on the rise. Major explanations for this development are soaring financial markets in the aftermath of financial market deregulation in the 1970s, a lighter taxation of top incomes and wealth, which has favoured the accumulation of wealth, and the rising importance of inheritances and inter vivos gifts.