Association for Public Policy Analysis & Management

Panel: The Varied Causes of Persistent and Rising Wealth Inequality

(Social Equity and Race)

Household wealth is key to short term and long term economic security and income mobility. Yet, wealth inequality has been growing for two decades. This leaves many families with little money to help pay their bills in an emergency. A growing share of families are also at risk at having to make substantial cuts in their consumption when they retire. And, fewer families than in the past can move when new job opportunities arise and help pay for their children’s education, limit economic mobility.

Importantly, wealth inequality has systematically increased by gender, race and income. The rise in gender wealth inequality in part follows from the growth in unpaid caregiving responsibilities in an aging society. Wealth inequality by race can be traced to the disproportionate incarceration rates among African-Americans. And, increases in wealth inequality by income substantially correlate with the fall in union membership.

This panel will present new research on important contributing factors to the increase in wealth inequality. All papers will use quantitative data analyses of administrative and proprietary data sources.

The findings point the way to clear policy implications. Addressing the costs associated with unpaid caregiving could impact the gender wealth gap, criminal justice reform could positively affect the racial wealth gap and labor law reforms could potentially reduce wealth inequality by income. The result would be more short-term economic security and greater long-term financial security and mobility.