Speaker
Shuyi Qiu
Graduate Student, Sanford School of Public Policy
Duke University
Abstract
Using over two decades of longitudinal wealth data from the Panel Study of Income Dynamics (PSID) and an adjusted latent transition model, this study examines how growing up under different family structures is linked to the variation in individuals’ wealth accumulation trajectories and their wealth allocation patterns. Viewing household wealth as an integrated portfolio of various types of assets and debts, this study aims to track how individuals transition between different portfolio categories in their age 20-40, and how these transitions vary depending on the family structure in their childhood. Additionally, I include a mediation analysis to assess the role of intergenerational transfer, human capital transfer, and family formation behaviors as mechanisms. Preliminary findings suggest that people’s wealth profiles vary significantly through different life stages: while liquid assets play a crucial role at younger ages, non-liquid assets and home equity dominates in the wealth portfolio of middle adulthood.