The Life-Cycle Dynamics of Wealth Mobility by Richard Audoly

Join us for this weeks Macroeconomics Research Seminar, Autumn Term 2024.

Richard Audoly, from the Federal Reserve Bank of New York, will present this weeks Macroeconomics seminar on The Life-Cycle Dynamics of Wealth Mobility.

Abstract

We use twenty-five years of tax records for the Norwegian population to study the mobility of wealth over people’s lifetimes. We find considerable wealth mobility over the life cycle. To understand the underlying mobility patterns, we group individuals with similar wealth rank histories using agglomerative hierarchical clustering, a tool from statistical learning. The mobility patterns we elicit provide evidence of segmented mobility. Over 60 percent of the population remains at the top or bottom of the wealth distribution throughout their lives. Mobility is driven by the remaining 40 percent, who move only within the middle of the distribution. Movements are tied to differential income trajectories and business activities across groups. We show parental wealth is the key predictor of who is persistently rich or poor, while human capital is the main predictor of those who rise and fall through the middle of the distribution.

This seminar will be held on campus in 5B.307 at 1.30pm on Tuesday, 10 December 2024. This event is open to all levels of study and is also open to the public. To register your place, please contact the seminar organisers.

This event is part of the Macroeconomics Research Seminar Series.