Affiliations: [a] Institute for Social Research, University of Michigan, Ann Arbor, MI, USA | [b] Board of Governors of the Federal Reserve System, USA | [c] Office for Health Equity and Inclusion, University of Michigan, Ann Arbor, MI, USA
Correspondence:
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Corresponding author: Fabian T. Pfeffer, Institute for Social Research, University of Michigan, Ann Arbor, MI, USA. E-mail:[email protected]
Abstract: Household wealth and its distribution are topics of broad public debate and
increasing scholarly interest. We compare the relative strength of two of
the main data sources used in research on the wealth holdings of U.S.
households, the Survey of Consumer Finances (SCF) and the Panel Study of
Income Dynamics (PSID), by providing a description and explanation of
differences in the level and distribution of wealth captured in these two
surveys. We identify the factors that account for differences in average net
worth but also show that estimates of net worth are similar throughout most
of the distribution. Median net worth in the SCF is 6% higher than in the
PSID and the largest differences between the two surveys are concentrated in
the 1-2 percent wealthiest households, leading to a different view of wealth
concentration at the very top but similar results for wealth inequality
across most of the distribution.
