Top wealth households in China and the United States: Wealth portfolios and determinants of top wealth

Top wealth households are crucial to understanding inequality. This study contrasts the characteristics of top wealth households in China and the United States, highlighting the salient differences between the two countries. A comprehensive review of extant literature was conducted to explain how divergent social and economic contexts in each country have led to the differences in top wealth ownership. The study further presents and empirically evaluates hypotheses regarding the differences in top wealth ownership between the two countries. Utilizing data from the Survey of Consumer Finances (SCF) and the China Household Finance Survey (CHFS), the study uncovers three significant differences. First, the wealth distribution in the United States is more unevenly distributed and concentrated at the top of the wealth distribution compared to China. Second, the top wealth households in the United States tend to have more diversified asset portfolios than their counterparts in China. Third, the demographic characteristics of the top wealth households differ significantly between the two countries. A notable finding is the marked difference in the age of the heads of top wealth households between the two countries, with the Chinese heads being much younger than their U.S. counterparts. The study concludes with the implication of these findings that social and economic contexts play a pivotal role in shaping the creation of top wealth.