Macrohistory Seminar – Clara Martinez-Toledano Toledano (Paris School of Economics)

Event details

  • Thursday, June 7
  • 12:15 PM
  • Kaiserplatz 7-9, 4th floor, Room 4.006

Housing Bubbles and Wealth Inequality: Evidence from Spain

This paper combines different sources (tax records, national accounts, wealth surveys) and a new asset-specific accumulation decomposition in order to analyze the impact of the Spanish housing bubble on wealth inequality. Wealth concentration has been quite stable since the eighties, with shares ranging between 5-10% and 50-60% for the bottom 50% and top 10% of the distribution, respectively. Housing reduced the levels of wealth inequality in the long-run. However, changes in portfolio structure and hence in savings rates across assets and wealth groups, have contributed to neutralizing the impact of the housing bubble and keeping the same high levels of wealth concentration of the 1980s in the late 2000s.