Abstract
This study delves into the meaning of the wealth-to-income ratio and its relationship with both wealth and income inequality. Our work covers four major industrialized countries: the U.S., France, Germany, and the United Kingdom. While we primarily focus on data from the post-World War II era, much of the data for France can be traced back to the beginning of the 19th century.
Recent research has extensively examined the significant rise in aggregate wealth across developed nations over the past five decades. In this study, we explore the mechanisms through which aggregate wealth growth leads to income inequality. Through our investigation, we identify what we term the "stock market channel" to inequality. Our findings demonstrate that in the U.S., the corporate sector is a primary contributor to both income and wealth inequality. In contrast, in countries such as France, the impact of the corporate sector on these inequalities is minimal. Germany appears to be an intermediate stage between the U.S. and France, while the U.K. presents some puzzles, subject to our further current investigation at the time of completing this dissertation.