Disparities in Wealth Accumulation and Loss from the Great Recession and Beyond

Journal Article

Disparities in Wealth Accumulation and Loss from the Great Recession and Beyond

Abstract

Using over two decades of Survey of Consumer Finances data and a pseudo-panel technique, we measure the impact of the Great Recession on US family wealth relative to the counterfactual of what wealth would have been given wealth accumulation trajectories. Our synthetic cohort-level models find that the Great Recession reduced average family wealth by 28.5 percentnearly double the magnitude of previous pre-post mean descriptive estimates and double the magnitude of any previous recession since the 1980s. The housing market was only part of the story; all major wealth components fell as a result of the Great Recession.

External Link

American Economic Review: Vol. 104 No. 5 (May 2014)https://www.aeaweb.org/articles.php?doi=10.1257/aer.104.5.240

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