Financialization and income generation in the 21st century

Rise of the Petit Rentier Class

Bibliographic Data

ID4774978
AuthorsAdam Goldstein (0000-0003-1127-3541, Princeton University, corresponding author), Ziyao Tian (0000-0001-7388-6410, Princeton University)
Year2022
Volume20
Issue4
Pages1567-1595
Publication date2022-11-22
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSocio-Economic Review (JOURNAL)
Journal identifiersISSN: 1475-1461 • E-ISSN: 1475-147X
PublisherOxford University Press (PUBLISHER • GB)
DOI10.1093/ser/mwaa038
OpenAlexW3080515255
LanguageEN
Citations received10
References cited49

This article considers the consequences of asset-based accumulation for household income factors and social class structure in 29 countries from 1998 to 2016. Are financialization, asset-based welfare institutions, and rising real estate returns fueling a growing class of petit rentiers in capitalist economies? That is, households who accrue more than a trivial share of income from capital rather than labor or government transfers. The analysis draws on the Luxembourg Income Study data. Contrary to expectations, most countries saw declines in the share of households who accrue more than 10%, or 20% of income from assets. Estimates from correlated random effects models indicate that financialization is associated with between-country differences in the size of the petit rentier, but not within-country change over time. The decline of the petit rentier can be partly explained by declining interest rates, which reduces income from bank savings

Asset (computer security) · Capital (architecture) · Demographic economics · Economics · Financialization · Geography · Income distribution · Inequality · Labour economics · Market economy · Real estate · Welfare · Economic Theory and Policy · Finance · Financial Literacy, Pension, Retirement Analysis · Housing, Finance, and Neoliberalism

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