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Children and the Elderly: Wealth Inequality Among America's Dependents
- Source :
- Demography. 55(3)
- Publication Year :
- 2018
-
Abstract
- Life cycle theory predicts that elderly households have higher levels of wealth than households with children, but these wealth gaps are likely dynamic, responding to changes in labor market conditions, patterns of debt accumulation, and the overall economic context. Using Survey of Consumer Finances data from 1989 through 2013, we compare wealth levels between and within the two groups that make up America’s dependents: the elderly and child households (households with a resident child aged 18 or younger). Over the observed period, the absolute wealth gap between elderly and child households in the United States increased substantially, and diverging trends in wealth accumulation exacerbated preexisting between-group disparities. Widening gaps were particularly pronounced among the least-wealthy elderly and child households. Differential demographic change in marital status and racial composition by subgroup do not explain the widening gap. We also find increasing wealth inequality within child households and the rise of a “parental 1 %.” During a time of overall economic growth, the elderly have been able to maintain or increase their wealth, whereas many of the least-wealthy child households saw precipitous declines. Our findings suggest that many child households may lack sufficient assets to promote the successful flourishing of the next generation.
- Subjects :
- Adult
050402 sociology
Inequality
Databases, Factual
media_common.quotation_subject
Article
0504 sociology
Debt
0502 economics and business
Economics
Humans
050207 economics
Demography
media_common
Market conditions
Aged
Aged, 80 and over
Life-cycle hypothesis
Family Characteristics
Flourishing
05 social sciences
Middle Aged
United States
Socioeconomic Factors
Demographic change
Economic context
Income
Marital status
Demographic economics
Subjects
Details
- ISSN :
- 15337790
- Volume :
- 55
- Issue :
- 3
- Database :
- OpenAIRE
- Journal :
- Demography
- Accession number :
- edsair.doi.dedup.....b925b4d266efe9cc5d0336b96dc0e2d0