Work

The distribution of privately held business assets in the United States

Year: 2024

Type: article

Abstract: Although privately held businesses are central to the economy and society, little is known about how their assets are distributed among the population. To better understand rising and persistent wealth inequalities, this paper describes the household distribution of private business assets in the United States and examines how it has changed over time. Using data from the 1989–2019 Survey of Consumer Finances , we show that the relative number of business owners has remained stagnant at low levels and that assets in privately held firms have become increasingly concentrated. In 2019, the top 1 % of households controlled nearly 80 % of the equity in private businesses, up from about 70 % in the late 1980s. Moreover, we find that these trends appear to be quite general and do not merely reflect dynamics among elites or in specific sectors of the economy. We discuss implications for the organization of the US economy , wealth inequality, and public policy.

Source: Research in Social Stratification and Mobility

DOI: 10.1016/j.rssm.2024.100993

Authors: Kim Pernell, Geoffrey T. Wodtke

Institutions: The University of Texas at Austin, University of Chicago

Language: English

Topic: Income, Poverty, and Inequality

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,490