Demographic transition and the rise of wealth inequality

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ID: 325017
2026
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Abstract
Abstract We analyse the contribution of rising longevity to the increase in wealth inequality in the U.S. over the past seventy years. To do so, we construct an overlapping generations (OLG) model with multiple sources of inequality, carefully calibrated to the data. Our key finding is that improvements in old-age longevity have a substantial impact on wealth inequality, accounting for approximately half the effect of income inequality, which has been the focus of much of the existing literature. In contrast, the impact of tax changes is relatively minor. The contribution of rising longevity is expected to continue driving wealth inequality upward in the coming decades.
Reference Key
openalex_W7203445291 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Krzysztof Makarski, Joanna Tyrowicz, Piotr Żoch
Journal the economic journal
Year 2026
DOI
10.1093/ej/ueag102
URL
https://doi.org/10.1093/ej/ueag102
Keywords Keywords not found

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