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The Anatomy of the Global Saving Glut

Author

Listed:
  • Luis Buluz

    (Universität Bonn = University of Bonn, WIL - World Inequality Lab)

  • Filip Novokmet

    (Universität Bonn = University of Bonn)

  • Moritz Schularick

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, Universität Bonn = University of Bonn, CEPR - Center for Economic Policy Research)

Abstract

This paper provides a household-level perspective on the rise of global saving and wealth since the 1980s. We calculate asset-specific saving flows and capital gains across the wealth distribution for the G3 economies – the U.S., Europe, and China. In the past four decades, global saving inequality has risen sharply. The share of household saving flows coming from the richest 10% of household increased by 60% while saving of middle class households has fallen sharply. The most important source for the surge in top-10% saving was the secular rise of global corporate saving whose ultimate owners the rich households are. Housing capital gains have supported wealth growth for middle-class households despite falling saving and rising debt. Without meaningful capital gains in risky assets, the wealth share of the bottom half of the population declined substantially in most G3 economies.

Suggested Citation

  • Luis Buluz & Filip Novokmet & Moritz Schularick, 2022. "The Anatomy of the Global Saving Glut," World Inequality Lab Working Papers hal-03881419, HAL.
    • Handle: RePEc:hal:wilwps:hal-03881419
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03881419
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    4. Kovács, Olivér, 2024. "A reziliencia metamorfózisa [The metamorphosis of resilience]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 408-443.

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    More about this item

    Keywords

    Income and wealth inequality; Saving; Household portfolios; Historical micro data;
    All these keywords.

    JEL classification:

    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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