It is well known that an uncertain income stream will induce individuals to save if they are forward looking. In this paper we investigate the consequences of such saving upon the distribution of wealth among households. The inquiry is motivated by the fact that both the dispersion of the U.S. wealth distribution and the variance of transitory income have increased in the recent past. Surprisingly, we find that an increase in earnings uncertainty is more likely to decrease than increase the inequality in wealth holdings.

Utilizing existing data and new research methods, Keister examines househould wealth distribution from 1962 to 1995.

In the 1980s, a decade of economic expansion, the rich grew richer but the poor poorer. These essays explore the disparities in wealth and income comparing the fortunes of American households with those in other industrialized nations. Demographic and structural changes, saving behaviouir, earning gaps, gender, education and race are analysed in these essays and methodological and measurement issues explored. Policies to counteract growing inequality are discussed and remedies proposed.