THE 0.0003 PERCENT: SHORT‐RUN DYNAMICS OF EXTREME WEALTH IN AMERICA

Abstract

This paper examines short‐run dynamics and changing sources of wealth among the Forbes 400 annual list of wealthiest individuals in the United States, before and after the 2008–2009 financial crisis. We analyze the interaction of growth of wealth with education, age, and being self‐made versus inheriting wealth. We find evidence of conditional convergence of wealth within the group. The wealth of the self‐made grew faster than their counterparts, though less so after the crisis. Those with advanced degrees had higher pre‐crisis growth of wealth than those without such degrees. Controlling for these characteristics, age was not a factor in wealth accumulation. Mobility in and out of the group was higher pre‐crisis.