Net Worth and Asset Ownership of Households: 1998 and 2000 · 2011-11-18 · ple size...

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Demographic Programs

U.S.Department of CommerceEconomics and Statistics Administration

U.S. CENSUS BUREAU

Net Worth and Asset Ownershipof Households: 1998 and 2000Household Economic Studies

Issued May 2003

CurrentPopulationReports

Shawna OrzechowskiPeter Sepielli

P70-88

INTRODUCTION through March 2000.3 SIPP collects liabil-ity and asset data as a supplement to its

Two of the most important defining fac- core questions about labor force partici-tors of economic status in the United pation, income, demographic characteris-States are income and net worth. When tics, and program participation. The pre-considered alone, income—the resources vious report in this series presented dataa household or person receives from a for 1995 collected in February-Marchjob, transfer program, or other source— 1995.4

provides an incomplete picture of eco-nomic well-being. Only when the wealthor net worth—the difference betweenassets and liabilities—a person or house-hold has at any given time is considered 3The sample of households in SIPP is divided into

four interview groups called “rotation groups.” Eachin conjunction with income does a better month, one of the four rotation groups is interviewedunderstanding of economic health and about the previous 4 months (the reference period);

each cycle of interviews frwell-being emerge.11 om all four groups is called a“wave.” The asset and liability data in this report werecollected in the sixth and twelfth waves of the 1996

This report compares the levels of SIPP panel. For the “1998” figures in this report, data

wealth and asset ownership, such as were collected from the first rotation group inDecember 1997 and refer to the last day of November

equity in a home, savings accounts, cer- 1997; the second rotation group was interviewed in

tificates of deposit, vehicle ownership, January of 1998 and their data refer to December 1997,and so on. As a result, the data represent a composite

and mutual funds, with various socioeco- of the assets and liabilities of the civilian noninstitution-nomic factors, including monthly house- alized population of the United States (excluding people

in group quarters) in November and December, 1997,hold income, in late 1997 and early and January and February, 1998. Similarly, the “2000”1998, and in late 1999 and early 2000 figures were collected from the first rotation group in

(“1998” and “2000” in this report).2 December 1999 and refer to the last day of NovemberThe 1999; and so on. Accordingly, the “2000” data repre-data are from the 1996 panel of the sent a composite of the assets and liabilities of the civil-

ian noninstitutional population (excluding people inSurvey of Income and Program group quarters) in November and December, 1999, andParticipation (SIPP) and represent infor- January and February, 2000.

mation collected from December 1997 4Data for 1995 were published in the report: P70-71 “Household Net Worth and Asset Ownership:through March 1998 and December 1999 1995.” This series of reports from SIPP began with thepublication of P70-7, “Household Wealth and AssetOwnership: 1984.” Data for 1991 and 1993 were pub-lished in P70-34, “Household Wealth and Asset

1 Ownership: 1991,” and P70-47,”Asset Ownership ofFor a further discussion of the relationship betweenHouseholds: 1993,” respectively.wealth and income, see Arthur B. Kennickell, 1999,

“Using Income to Predict Wealth” available at www.federalreserve.gov/pubs/oss/oss2/method.html.

2See box “Key Definitions and Explanations” on page 3 for the definitions of the concepts (for example,

net worth) used throughout this report. The estimates inthis report are based on responses from a sample of thepopulation. As with all surveys, estimates may varyfrom the actual values because of sampling variation orother factors. All comparisons made in this report haveundergone statistical testing and are significant at the90-percent confidence level unless otherwise noted.

2 U.S. Census Bureau

HIGHLIGHTS

(All dollar values in this report areexpressed in 2000 dollars, unlessspecified otherwise.)

• Median household net worthincreased from $49,932 in1998 to $55,000 in 2000.5

• Median household asset valuesof stocks, rental property andIndividual Retirement Accounts(IRA and Keogh accounts) alsoexperienced significantincreases between 1998 and2000.

• The median household valueof other financial investmentsfell during the same periodfrom $24,367 to $22,000.Other financial investmentsinclude mortgages held forsale of real estate and amountdue from sale of business orproperty.

• Median home equity for house-holds was $59,000 in 2000,significantly higher than the1998 median household homeequity of $55,263.

• In 2000, median household networth varied from $7,396 forhouseholds in the lowestincome quintile to $185,500for households in the highestincome quintile.

• In 2000, median household networth generally increased withthe age of the householder, ris-ing from $7,240 for house-holders under the age of 35, to$108,885 for householders 65and older.

5The median net worth is the amount whichdivides the net worth distribution into twoequal groups, one having household net worthless than the median amount and the otherhaving net worth above the median. SeeAppendix B for a technical description of thechanges in median estimation from earlierreports in this series.

• In 2000, the household mediannet worth was $79,400 forhouseholds with a non-Hispanic White householder,$7,500 for households with aBlack householder, and $9,750for households with a Hispanichouseholder.6 Hispanic house-holds and Black householdshad significantly lower networth than non-Hispanic Whitehouseholds, but the differencebetween Hispanic and Blackhouseholds was not statistical-ly significant.

• Married-couple households, themajority of households, hadthe highest median net worthin 2000: $91,218.Significantly lower net worthcharacterized male household-ers ($24,659) and femalehouseholders ($23,028).

• In 2000, households withhouseholders having a job forthe entire 4-month referenceperiod had a median house-hold net worth of $51,050,compared with $28,543 forthose with householders hav-ing no labor force activity dur-ing this time.

ABOUT THIS REPORT

SIPP periodically collects detailedwealth data as part of its normaloperation.7 SIPP has a large sam-ple size (approximately 37,000households in the 1996 panel) thatallows comparisons of the assetsof small groups, especially thosethat tend to be underrepresentedin other surveys (such as low

6Hispanics may be of any race. The race orHispanic origin of the householder designatesthe race or Hispanic origin of the household.

7Other sources for wealth and asset infor-mation include the Survey of ConsumerFinances, the National Longitudinal Study, theFederal Reserves Flow of Funds accounts, thePanel Study of Income Dynamics, and theConsumer Expenditure Survey.

income households).8 BecauseSIPP’s sample design uses anaddress list that is updated repeat-edly through extensive listing pro-cedures, SIPP enjoys a high degreeof population coverage, whichmakes its statistical estimates validrepresentations of the population.9

SIPP’s design also allows for thereliable measurement of householdmedian net worth, the percentageof households holding a particulartype of asset, and the distributionof the net worth of households byasset type.

The distribution of wealth in theUnited States has a large positiveskew, with relatively few house-holds holding a large proportion ofthe wealth. For this type of distri-bution, the median is the preferredmeasure of central tendencybecause it is less sensitive thanthe average (mean) to extremeobservations. The median is alsoconsiderably lower than the aver-age, and provides a more accuraterepresentation of the wealth andasset holdings of the typicalhousehold. For example, morehouseholds have a net worth nearthe median of $55,000 than nearthe average of $182,381.

The median is also preferredbecause the concentration ofwealth among relatively fewhouseholds affects estimates ofthe average household net worth

8The population represented in this report isthe noninstitutional population, which excludespeople in group quarters. Group quarters areunits consisting of unrelated individuals livingtogether in living quarters that have separaterooms but share common facilities such as dining halls. Individuals in group quarterswould not normally share financial resources.The survey’s universe also excludes people ininstitutions, people in Puerto Rico, and peopleliving in military barracks. Members of theArmed Forces living off post or with their fami-lies on post are included if there is at least onecivilian adult living in the household.

9See the 1993 SIPP “Source and AccuracyStatement” and the 1998 SIPP “Quality Profile”available at the following Web site:www.sipp.census.gov/sipp/methmain.htm.

U.S. Census Bureau 3

Key Definitions and Explanations

Householder. Survey procedures call for listing first the person (or one of the people) in whose namethe home is owned or rented as of the interview date. If the house is owned jointly by a married cou-ple, either the husband or the wife may be listed first, thereby becoming the reference person, orhouseholder, to whom the relationship of the other household members is recorded. One person ineach household is designated as the “householder.” The number of householders, therefore, is equalto the number of households.

Household. A household consists of all people who occupy a housing unit. A house, an apartment orother group of rooms, or a single room is regarded as a housing unit when it is occupied or intendedfor occupancy as separate living quarters; that is, when the occupants do not live and eat with anyother people in the structure and there is either (1) direct access from the outside or through a com-mon hall or (2) a kitchen or cooking equipment for the exclusive use of the occupants.

For this report, the household composition was determined as of the interview date. A householdincludes the related family members and all the unrelated people, if any, such as lodgers, foster chil-dren, wards, or employees who share the housing unit. A person living alone in a housing unit or agroup of unrelated people sharing a housing unit as partners is also counted as a household. Thecount of households excludes group quarters. Examples of group quarters include rooming andboarding houses, college dormitories, and convents and monasteries.

Median income. The median household income is the amount which divides households into twoequal groups, one having incomes above that amount and the other having incomes below thatamount.

Net worth. The household net worth estimates shown in this report are based on the sum of themarket value of assets owned by every member of the household minus liabilities (secured or unse-cured) owed by household members. The estimates represent the net worth of households at the endof the appropriate reference period. The net worth concept is based on the value of all assets minusall liabilities listed on page 5 (see box “Assets and Liabilities Included In Net Worth”). The major assetsnot covered in this report are equities in pension plans, the cash value of life insurance policies, andthe value of home furnishings and jewelry. These items are not covered because it is particularly diffi-cult to obtain reliable estimates of the value of these assets in a household survey.

Median net worth. The median net worth is the amount which divides households into two equalgroups, one having net worth less than that amount and the other having net worth above thatamount.

Average net worth. The average net worth is the average obtained by dividing the total net worthof a group by the number of households in that group.

Comparison of average and median values of net worth. Average and median values are meas-ures of central tendency of distributions. For symmetric distributions, the average and median valuesare the same. For skewed distributions, however, the average and median values differ. The distribu-tion of net worth is skewed with a concentration of households with low values and very few house-holds with high values. In this case, the median is less than average net worth; the large proportionof values at the low end bring the median down, while less frequent but large values increase theaverage. Since averages are more sensitive to extremely high values and the data are sparse at theupper end of the distribution, medians are used in the analysis in this report.

For a complete listing of definitions and explanations see www.sipp.census.gov/sipp/pubsmain.htm.


and of the aggregate net worth ofthe country made from surveysnot taking this concentration intoconsideration.10 To address thisissue, a household survey shouldheavily oversample wealthy house-holds to obtain a better represen-tation of the less commonly heldassets. For example, the Survey ofConsumer Finances (SCF), conduct-ed by the Federal Reserve Board,oversamples households likely tobe wealthy.11 SIPP, however, doesnot oversample wealthy house-holds (indeed, it oversampleslower-income households), and itsestimates of average net worthand total aggregate net worth aresignificantly lower than the esti-mates from the SCF. For example,average or mean net worth in1998 from SIPP was $149,629 (in1998 dollars), compared with$282,500 (in 1998 dollars) fromthe SCF. The two surveys’ esti-mates of median household networth for the same year were sub-stantially different from each otherbut much closer: $47,887, and$71,600, respectively.12

10The aggregate value of net worth is theproduct of the number of households timesaverage net worth.

11The 1998 SCF was divided into two sam-ples totaling 4,309 families. The first is an areaprobability sample, with 2,813 families, that issimilar in construction to the SIPP sample; thesecond (called the “list” sample), with 1,496families, oversamples high income families, asdetermined by tax documents from the InternalRevenue Service. For a detailed description ofthe SCF sampling strategies, see Gerhard Fries,Martha Starr-McCluer and Annika Sunden, “AMeasurement of Household Wealth UsingSurvey Data: An Overview of the Survey ofConsumer Finances,” available at the followingWeb site www.federalreserve.gov/pubs/oss/oss2/method.html.

12One reason that the estimates of mediannet worth from SIPP and SCF are much closerthan their estimates of average net worth isthat the SCF survey is intended to measure fam-ily wealth and is more comprehensive in itscoverage of asset holdings. SIPP does notmeasure equity in pension plans, cash surren-der value of life insurance policies, and thevalue of household furnishings such asantiques, art, and jewelry. See Appendix A for afurther discussion of differences between SCFand SIPP.

Appendix A presents the results ofa study that benchmarked SIPPestimates against those from theSCF.

Data in this report are presented inconstant 2000 dollars using theresearch series of the ConsumerPrice Index for urban consumers(CPI-U-RS) (Appendix C describesthis methodology). Median house-hold net worth is analyzed byhousehold income, age, race, eth-nicity, type of household, andlabor force activity of the house-holder. The report also compares2000 and 1998 homeownershiprates.

Detailed tables for this and earlierreports are provided on theInternet at www.sipp.census.gov/sipp/pubsmain.htm.

HOUSEHOLD NET WORTH

The median household net worthin 2000 was $55,000, higher thanin 1998, when it was $49,932.SIPP data show that net worth fellfrom 1984 until 1993, then beganclimbing, but did not surpass the1984 level until 2000 (Table B).

Table A and Figures 1, 2, and 3provide an overall view of the dis-tribution of asset ownership, themedian value of holdings for assetowners, and the percentage oftotal net worth held in each typeof asset in 2000 and 1998.

Home equity (the value of thehome minus the mortgageamounts) constituted the largestshare of household net worth,accounting for 32.3 percent oftotal net worth in 2000. In 2000,67.2 percent of households report-ed owning homes with a medianequity of $59,000 in their homes;up from 66.4 percent and $55,263in 1998. As also shown in Figure 2and Figure 3, the percentage of

people owning their own home, aswell as the median value of theequity in their home, increasedbetween 1998 and 2000. TheHousing Vacancy Survey estimatedthe homeownership rates for thefirst quarter of 1998 and 2000 as65.9 and 67.1 percent, respective-ly.13

Probably reflecting the stock mar-ket boom of the late 1990s, stocksand shares in mutual funds heldoutside IRAs and 401K plans madeup the next largest share of networth in 2000—15.6 percent, wellabove the share in 401K and ThriftSavings Plans and interest-earningassets at financial institutions (9.7 and 8.9 percent, respectively).However, the percentage of house-holds owning interest-earningassets was far greater than thepercentage that owned stocks ormutual-fund shares: in 2000, 65.0 percent of households hadinterest-earning assets at financialinstitutions, with a median valueof $4,000; while only 27.1 percentowned stocks or mutual-fundshares, with a median value of$19,268.

In 2000, 3.3 percent of householdsreported owning other interest-earning assets (such as govern-ment securities and municipalbonds), lower than in 1998 (3.9 percent). In 2000, the medianvalue of household holdings inthese assets was $29,013, notsignificantly different from 1998($31,281). At the same time, thepercentage of households owning

13The Housing Vacancy Survey provides cur-rent information on rental and homeownervacancy rates, and characteristics of units avail-able for occupancy. These data are used exten-sively by public and private sector organiza-tions to evaluate the need for new housingprograms and initiatives. In addition, the rentalvacancy rate is a component of the index ofleading economic indicators and is therebyused by the federal government and economicforecasters to gauge the current economic cli-mate. An overview of the survey is available atwww.census.gov/hhes/www/hvs.html.


Table A.Asset Ownership Rates for Households, Median Value of Holdings, and the Distributionof Net Worth by Asset Type: 1998 and 2000(Excludes residents of group quarters)

19982000 (In 2000 dollars)

Asset type Percent of Median value Percent of Median valuehouseholds of asset for Percent households of asset for Percent

that own asset owners distribution of that own asset owners distribution ofasset type (dollars) net worth1 asset type (dollars) net worth1

All assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . (X) 55,000 100.0 (X) 49,932 100.0

Interest-earning assets at financialinstitutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.0 4,000 8.9 63.9 3,854 8.1

Other interest-earning assets . . . . . . . . . . . . . . . 3.3 29,013 1.7 3.9 31,281 2.7Regular checking accounts . . . . . . . . . . . . . . . . . 37.5 600 0.3 38.9 521 0.4Stocks and mutual fund shares . . . . . . . . . . . . . 27.1 19,268 15.6 27.1 17,517 18.8Own home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67.2 59,000 32.3 66.4 55,263 33.7Rental property . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.9 70,000 3.7 5.4 59,434 4.5Other real estate . . . . . . . . . . . . . . . . . . . . . . . . . . 6.6 40,000 3.6 6.5 31,281 3.2Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85.8 5,875 3.7 85.3 6,073 4.4Business or profession . . . . . . . . . . . . . . . . . . . . . 10.8 10,000 7.7 11.5 7,299 7.3U.S. savings bonds . . . . . . . . . . . . . . . . . . . . . . . . 14.7 1,000 0.5 16.3 834 0.6IRA or Keogh accounts . . . . . . . . . . . . . . . . . . . . 23.1 24,000 8.6 21.3 19,811 7.9401K and thrift savings plans . . . . . . . . . . . . . . . 29.9 20,000 9.7 26.8 15,641 8.6Other financial investments2 . . . . . . . . . . . . . . . . 3.9 22,000 1.6 4.7 24,367 2.6Unsecured liabilities3 . . . . . . . . . . . . . . . . . . . . . . 52.7 4,000 –3.0 54.7 3,649 –3.4

X Not applicable.1Individual outliers that highly influenced the mean value for asset categories were topcoded or excluded. The mean is used to calculate the percent distri-

bution. The outlier adjustments to the individual assets and not the totals led to this column not summing to 100 percent.2Includes mortgages held for sale of real esate, amount due from sale of business or property, and other financial assets.3Because net worth is assets less liabilities, unsecured liabilities are subtracted from the distribution of net worth and are shown as negative.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.

Assets and Liabilities Included in Net Worth

I. Assets II. Liabilities

Interest-earning assets held at financial institutions Secured liabilitiesPassbook savings account Margin and broker accountsMoney market deposit accounts Mortgages on own homeCertificate of deposit Mortgages on rental propertyInterest-earning checking accounts Mortgages on other homes or real estate

Other interest-earning assets Debt on business or professionU.S. Government securities Vehicle loansMunicipal or corporate bonds

Unsecured liabilitiesStocks and mutual fund shares

Credit card and store billsRental property

Doctor, dentist, hospital, and nursing Mortgages held for sale of real estate

home billsAmount due from sale of business or property

Loans from individualsRegular checking accounts

Loans from financial institutionsU.S. savings bonds

Educational loansHome ownership

Other unsecured liabilitiesVacation homes and other real estateIRA and Keogh accounts401K and thrift savings plansMotor vehiclesOther financial assets


IRA or Keogh accounts increased the median amount of the assetsfrom 21.3 percent to 23.1 percent, in those vehicles was about thewith the median value of these same in both 1998 and 2000. accounts increasing from $19,811to $24,000. The percentage ofhouseholds owning vehicles and

NET WORTH BY MONTHLYINCOME

The relationship between monthlyincome and the net worth ofhouseholds is illustrated in Table Cand Figure 4. Household incomeis the average monthly incomereceived from all sources by allmembers of a household duringthe last month prior to the surveyinterview. Both Table C and Figure 4 show a strong positiverelationship between the mediannet worth of households andmonthly income quintile for 2000and 1998.

Median net worth in 2000 rangedfrom $7,396 for households in thelowest quintile to $185,500 forhouseholds in the highest.Although most quintiles saw

Figure 1.

20001998

Unsecured liabilities

Regular checking accounts

U.S. savings bonds

Other financial investments

Other real estate

Other interest-earning assets

Business or profession

Rental property

401K & thrift savings plans

IRA or Keogh accounts

Motor vehicles

Stocks and mutual fund shares

Interest-earning assets atfinancial institutions

Own home

Percent of Aggregate Household Net Worth by Asset Type: 2000(Percent)

33.7

8.1

3.74.4

9.78.6

3.74.5

7.77.3

1.72.7

3.63.2

1.62.6

0.50.6

0.30.4

-3.0-3.4

32.3

8.9

15.618.8

8.67.9


Table B.Trends in Net Worth: 1984-2000(In 2000 dollars)1

Year Number ofhouseholds2 Median net worth Standard error

1984 . . . . . . . . . . . . . . . . . . . 86,790 50,018 1,0461988. . . . . . . . . . . . . . . . . . . 91,554 49,855 1,0861991. . . . . . . . . . . . . . . . . . . 94,692 44,615 9611993. . . . . . . . . . . . . . . . . . . 96,468 43,567 8831995. . . . . . . . . . . . . . . . . . . 99,088 44,578 5251998. . . . . . . . . . . . . . . . . . . 101,782 49,932 5212000. . . . . . . . . . . . . . . . . . . 104,644 55,000 567

1See Appendix C for methodology. For reference period, see appropriate publication atwww.sipp.census.gov/sipp/pubsmain.htm.

2Number of households in thousands.

Note: SIPP was redesigned for the 1996 panel. The redesign may have affected the comparability ofthe data from 1998 and later years with the data from earlier panels.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 Panel.


Figure 2.

20001998

Interest-earning assets at financial institutions

Equity in motor vehicles

Equity in own business or profession


401K & thrift savings plans


Other interest-earningassets

Equity in own home

Median Value of Asset Holdings for Selected Asset Types: 1998 and 2000(2000 dollars)

55,263

24,00019,811

19,26817,517

10,0007,299

5,8756,073

4,0003,854

59,000

29,01331,281

20,00015,641


Figure 3.

20001998

Interest-earning assets at financial institutions

Equity in motor vehicles

Equity in own businessor profession


401K &thrift savings plans


Other interest-earningassets

Equity in own home

Asset Ownership Rates of Households for Selected Asset Types: 1998 and 2000(Percent)

67.2

21.323.1

27.127.1

11.510.8

85.385.8

63.965.0

66.4

3.93.3

26.829.9



increases in median net worth for households in the lowestbetween 1998 and 2000, the high- income quintile to 87.1 percent forest quintile in 2000 had a particu- households in the highest incomelarly substantive increase from quintile, and median home equity$161,174 to $185,500. ranged from $50,000 in the lowest

income quintile to $85,000 in theAsset ownership patterns and

highest. median household asset valuesalso varied by household monthly Ownership rates and median val-income quintile (Table D). For ues for assets other than homeexample, the homeownership rate equity also display striking differ-in 2000 ranged from 46.2 percent ences between the lowest and the

highest income quintiles. In 2000,these assets included stocks andmutual fund shares (ownershiprates of 9.2 percent for the lowestquintile, and 51.6 percent for thehighest), IRA or Keogh accounts(8.6 percent and 42.6 percent),401K and thrift savings plans (4.7 percent versus 58.2 percent)and business equity (5.9 percentrising to 18.5 percent). Medianvalue of these assets also showedsharp differences: in 2000, thevalue of stocks and mutual fundshares varied from $11,500 forthe lowest income group to$30,000 for the highest. Withinincome quintiles, the median valueof stocks and mutual fund assetseither increased significantly from1998 to 2000 or remained aboutthe same. The lowest incomequintile saw an increase of $3,158from 1998 to 2000; the fourthincome quintile saw an increase of$4,488.

Table E shows that the highestincome quintile held the largestshare of asset value regardless ofeach asset type in 1998 and 2000.Its share ranged from 33.3 percent

Table C.Median Net Worth of Households by Monthly HouseholdIncome Quintile Groups: 1998 and 2000(Excludes residents of group quarters)

Monthly household income quintile1

2000 1998 (in 2000 dollars)

Number ofhouse-holds2

Median networth

(dollars)

Number ofhouse-holds2

Median networth

(dollars)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . 104,644 55,000 101,782 49,932

Lowest quintile . . . . . . . . . . . . . . . . . . . . . 20,937 7,396 20,385 6,073Second quintile . . . . . . . . . . . . . . . . . . . . . 20,937 26,950 20,347 24,841Third quintile . . . . . . . . . . . . . . . . . . . . . . . 20,913 44,400 20,344 40,828Fourth quintile . . . . . . . . . . . . . . . . . . . . . . 20,935 78,001 20,351 68,297Highest quintile . . . . . . . . . . . . . . . . . . . . . 20,923 185,500 20,354 161,174

1Quintile upper limits for 2000 were: lowest quintile - $1,304; second quintile - $2,426; third quintile -$3,813; fourth quintile - $5,988.Upper limits for 1998 were: lowest quintile - $1,194; second quintile - $2,006; third quintile - $3,463;fourth quintile - $5,417.

2Number of households in thousands.


Figure 4.

20001998

Lowest quintile

Second quintile

Third quintile

Fourth quintile

Highest quintile

Median Net Worth of Households by Monthly Household Income Quintile Groups: 1998 and 2000(2000 dollars)

161,174

44,400

40,828

26,95024,841

7,3966,073

185,500

78,00168,297



for equity in motor vehicles and funds (18.1percent) than did the for all households with household-35.4 percent for home equity to lowest quintile (7.7 percent). The ers under the age of 35 was65.6 percent for other interest- same was true for interest-earning $7,240, significantly lower thanearning assets in 2000. Table E assets not held at financial institu- the median of $120,000 for house-also shows that the composition of tions —2.4 percent for the highest holders aged 70 to 74. Table Fnet worth by asset type differed by and 0.4 percent for the lowest. and Figure 5 show the medianincome quintiles in 2000. The declined for householders 75 andshare of net worth in home equity older to $100,100.was highest for the lowest quintile NET WORTH BY AGE

Householders under 35 years old(56.2 percent), decreasing to

The age of the householder has a tend to have more income, but24.2 percent for the highest quin-

positive relationship with house- lower net worth, than household-tile. In contrast, the highest quin-

hold net worth up to age 74. In ers 65 years and older: about tile had a much larger proportion

2000, median household net worth 58.6 percent of the youngestof net worth in stocks and mutual

Table D.Asset Ownership Rates for Households and Median Value of the Holdings by MonthlyHousehold Income Quintile for Selected Asset Types: 1998 and 2000(Excludes residents of group quarters)


Interest-earning

assets atfinancial

institutions

Otherinterest-earningassets

Stocksand

mutualfund

sharesEquity in

own home

Equity inmotor

vehicles

Equity inown

businessor

profession

IRA orKeogh

accounts

401K andthrift saving

plans

Percent of Households OwningAssets

2000

Total . . . . . . . . . . . . . . . . . . . . . . . . . 65.0 3.3 27.1 67.2 85.8 10.8 21.3 29.9Lowest quintile . . . . . . . . . . . . . . . . . . . . 39.2 1.0 9.2 46.2 63.4 5.9 8.6 4.7Second quintile . . . . . . . . . . . . . . . . . . . . 56.4 2.0 17.6 59.3 85.4 7.0 16.1 14.3Third quintile. . . . . . . . . . . . . . . . . . . . . . 66.6 3.1 24.4 66.4 91.5 10.0 20.6 28.0Fourth quintile . . . . . . . . . . . . . . . . . . . . 76.3 3.2 32.8 77.0 94.1 12.5 27.6 44.3Highest quintile . . . . . . . . . . . . . . . . . . . .

1998

86.3 7.0 51.6 87.1 94.8 18.5 42.6 58.2

Total . . . . . . . . . . . . . . . . . . . . . . . . . 63.9 3.9 27.1 66.4 85.3 11.5 21.3 26.8Lowest quintile . . . . . . . . . . . . . . . . . . . . 35.0 1.2 9.0 45.5 61.1 6.0 7.3 4.1Second quintile . . . . . . . . . . . . . . . . . . . . 53.4 2.3 15.6 58.3 84.8 8.2 14.1 10.9Third quintile . . . . . . . . . . . . . . . . . . . . . . 66.5 3.5 23.9 66.0 91.8 10.2 19.3 25.0Fourth quintile . . . . . . . . . . . . . . . . . . . . 76.7 4.1 33.4 75.9 93.6 13.7 24.6 38.7Highest quintile . . . . . . . . . . . . . . . . . . . .

Median Value of Holdings forAsset Owners

2000 (Dollars)

87.7 8.4 53.5 86.2 95.0 19.1 41.2 55.1

Total . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 29,013 19,268 59,000 5,875 10,000 24,000 20,000Lowest quintile . . . . . . . . . . . . . . . . . . . . 2,000 11,605 11,500 50,000 2,832 4,000 20,000 10,000Second quintile . . . . . . . . . . . . . . . . . . . . 2,950 23,907 13,000 50,000 3,950 5,000 22,541 7,450Third quintile . . . . . . . . . . . . . . . . . . . . . . 2,950 25,000 12,000 50,000 5,275 8,000 20,000 11,500Fourth quintile . . . . . . . . . . . . . . . . . . . . . 3,650 30,000 17,000 55,000 6,525 10,000 18,000 18,000Highest quintile . . . . . . . . . . . . . . . . . . . .

1998 (2000 dollars)

8,000 30,000 30,000 85,000 9,885 15,000 31,000 40,000

Total . . . . . . . . . . . . . . . . . . . . . . . . . 3,854 31,281 17,517 55,263 6,073 7,299 19,811 15,641Lowest quintile . . . . . . . . . . . . . . . . . . . . 2,662 13,068 8,342 46,922 3,311 5,214 15,641 6,048Second quintile . . . . . . . . . . . . . . . . . . . . 2,920 24,201 10,427 52,135 4,458 5,214 17,726 5,214Third quintile . . . . . . . . . . . . . . . . . . . . . . 2,419 31,281 12,512 52,135 6,073 7,820 17,726 8,342Fourth quintile . . . . . . . . . . . . . . . . . . . . . 3,145 31,281 12,512 52,135 7,247 5,214 15,641 13,555Highest quintile . . . . . . . . . . . . . . . . . . . . 6,882 31,281 32,324 70,904 10,688 11,730 26,068 31,281

1Quintile upper limits for 2000 were: lowest quintile - $1,304; second quintile - $2,426; third quintile -were: lowest quintile - $1,194; second quintile - $2,006; third quintile - $3,463; fourth quintile - $5,417.


$3,813; fourth quintile - $5,988. Upper limits for 1998


households had average monthly indicator of well-being for house- The major type of asset for all ageincomes in the top three income holds, especially for households groups was home equity, accountingquintiles (above $2,426) in 2000, with retired householders. In for about a third or more of totalwhile only 34.9 percent of the old- 2000, this measure increased with net worth (Table G). This was fol-est households were in these quin- age of householder for all age lowed by stocks and bonds andtiles. However, the youngest groups under 65. The 55-to-64 mutual funds. The proportion ofhouseholds had a median net group’s median, $32,304, was net worth held as equity in motorworth of only $7,240 in 2000, nearly 10 times that of the under- vehicles and in business equitycompared with $108,885 for those 35 group, $3,300, and significant- declined steadily as householderswith a householder 65 and older. ly higher than the 75-and-over aged: in 2000, motor vehicles fell

group’s $19,025. from 9.5 percent of net worth forMedian net worth excluding home

the youngest group to 3.0 percentequity is another important

for the oldest, and business

Table E.Distribution of Asset Values for Households and the Distribution of Net Worth byMonthly Household Income Quintile for Selected Asset Types: 1998 and 2000(Excludes residents of group quarters)


Interestearning

assets atfinancial

institutions

Otherinterest-earningassets

Stocks andmutual

fundshares

Equity inown home

Equity inmotor

vehicles

Equity inown

businessor

profession

IRA orKeogh

accounts

401K andthrift saving

plans

Percent Distribution of AssetValue

2000

Total. . . . . . . . . . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0Lowest quintile . . . . . . . . . . . . . . . . . . . 7.1 1.6 3.2 11.5 9.4 3.9 5.9 2.2Second quintile . . . . . . . . . . . . . . . . . . 14.7 5.0 9.6 14.9 14.7 7.2 13.9 4.2Third quintile. . . . . . . . . . . . . . . . . . . . . 16.4 10.9 12.1 17.0 18.7 12.3 14.9 10.3Fourth quintile . . . . . . . . . . . . . . . . . . . 19.9 16.2 20.3 21.3 23.9 17.4 21.1 22.5Highest quintile . . . . . . . . . . . . . . . . . .

1998

41.9 65.6 54.8 35.4 33.3 59.0 44.2 60.8

Total. . . . . . . . . . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0Lowest quintile . . . . . . . . . . . . . . . . . . . 5.5 1.5 3.6 11.1 8.6 6.8 5.4 1.9Second quintile . . . . . . . . . . . . . . . . . . 12.8 4.3 5.9 14.9 14.5 8.4 13.6 3.2Third quintile. . . . . . . . . . . . . . . . . . . . . 18.3 10.3 11.3 18.7 19.4 11.2 14.9 9.7Fourth quintile . . . . . . . . . . . . . . . . . . . 21.7 16.7 20.8 21.1 23.8 20.0 14.6 20Highest quintile . . . . . . . . . . . . . . . . . .

Percent Distribution of Net Worth

2000

41.6 67.2 58.3 34.2 33.7 53.0 46.5 65.1

Total. . . . . . . . . . . . . . . . . . . . . . . . . . 8.9 1.7 15.6 32.3 3.7 7.7 8.6 9.7Lowest quintile . . . . . . . . . . . . . . . . . . . 9.6 0.4 7.7 56.2 5.2 4.6 7.7 3.3Second quintile . . . . . . . . . . . . . . . . . . 11.8 0.8 13.5 43.4 4.9 5.0 10.8 3.7Third quintile. . . . . . . . . . . . . . . . . . . . . 10.4 1.3 13.5 39.0 4.9 6.8 9.2 7.1Fourth quintile . . . . . . . . . . . . . . . . . . . 8.4 1.3 15.1 32.6 4.2 6.4 8.6 10.4Highest quintile . . . . . . . . . . . . . . . . . .

1998

7.9 2.4 18.1 24.2 2.6 9.6 8.1 12.5

Total. . . . . . . . . . . . . . . . . . . . . . . . . . 8.1 2.7 18.8 33.7 4.4 7.3 7.9 8.6Lowest quintile . . . . . . . . . . . . . . . . . . . 6.7 0.6 10.3 56.1 5.7 7.5 6.3 2.4Second quintile . . . . . . . . . . . . . . . . . . 9.8 1.1 10.4 47.4 6.1 5.8 10.1 2.6Third quintile. . . . . . . . . . . . . . . . . . . . . 9.9 1.8 14.3 42.1 5.8 5.5 7.9 5.6Fourth quintile . . . . . . . . . . . . . . . . . . . 8.5 2.2 19.1 34.7 5.2 7.2 7.6 8.4Highest quintile . . . . . . . . . . . . . . . . . . 7.1 3.8 23.1 24.3 3.2 8.2 7.7 11.8





Table F.Median Net Worth and Median Net Worth Excluding Home Equity of Households by Age ofHouseholder and Monthly Household Income Quintile: 1998 and 2000(Excludes residents of group quarters. Number of households in thousands)

Monthly householdincome quintile

TotalLess than35 years

35 to 44years

45 to 54years

55 to 64years

65 years of age and older

Total65 to 69

years70 to 74

years

75 yearsof age

and older

2000 Monthly HouseholdIncome Quintile1

All households (thousands) . . . . . . 104,644 22,362 24,717 21,347 14,139 22,079 5,634 5,710 10,735Median net worth . . . . . . . . . . . . . . . 55,000 7,240 44,275 83,150 112,048 108,885 114,050 120,000 100,100

Excluding home equity . . . . . . . .

Lowest quintile:

13,473 3,300 13,100 23,525 32,304 23,369 27,588 31,400 19,025

Households (thousands) . . . . . . . 20,937 4,322 3,333 2,827 2,574 7,882 1,497 1,758 4,626Median net worth . . . . . . . . . . . . . 7,396 500 1,510 5,896 21,000 44,346 32,000 43,230 46,266

Excluding home equity . . . . . .

Second quintile:

1,025 0 500 600 1,500 3,500 2,900 2,885 4,000

Households (thousands) . . . . . . . 20,937 4,944 3,888 2,958 2,648 6,498 1,498 1,721 3,280Median net worth . . . . . . . . . . . . . 26,950 2,950 7,556 24,750 51,875 114,425 104,800 113,893 116,166


Third quintile:

6,349 1,500 2,500 4,750 10,150 29,532 22,332 31,513 31,269



Fourth quintile:

12,333 3,550 8,500 12,725 29,210 78,213 52,550 84,900 100,900

Households (thousands) . . . . . . . 20,935 4,609 6,010 5,096 2,886 2,334 855 640 839Median net worth . . . . . . . . . . . . . 78,001 19,664 64,450 101,301 157,775 284,565 222,918 312,877 322,785


Fifth quintile:

26,998 8,775 24,647 35,098 64,750 124,733 93,950 148,792 134,123



1998 Monthly HouseholdIncome Quintile1 (2000 dollars)

98,510 29,850 82,235 123,621 182,430 328,432 237,925 272,681 414,369

All households (thousands) . . . . . . 101,782 23,293 24,224 19,598 12,983 21,684 5,886 5,707 10,091Median net worth . . . . . . . . . . . . . . . 49,932 6,594 38,226 75,513 103,332 105,413 125,745 111,385 97,206

Excluding home equity . . . . . . . .

Lowest quintile:

12,145 3,519 11,889 20,927 28,649 22,794 32,814 24,208 19,034

Households (thousands) . . . . . . . 20,385 4,673 3,255 2,635 2,388 7,435 1,477 1,761 4,197Median net worth . . . . . . . . . . . . . 6,073 104 1,043 6,073 17,205 42,732 35,316 38,918 46,713


Second quintile:

938 0 386 726 1,408 3,693 2,190 3,493 4,692



Third quintile:

6,177 1,303 3,024 5,020 8,621 26,303 28,253 25,126 27,051



Fourth quintile:

11,828 4,275 8,368 11,918 25,423 64,221 55,674 55,465 85,866



Fifth quintile:

22,909 9,989 20,616 23,924 57,322 115,894 94,964 115,791 135,218


Excluding home equity . . . . . . 82,947 27,345 74,039 103,492 156,412 312,879 216,439 341,561 405,350





equity similarly declined from 14.0 percent to 2.4 percent.

As expected, householders 55 to64 years old had the highest pro-portion of their net worth in IRAand Keogh accounts (12.5 percent),while other age groups had pro-portions that ranged from 4.1 per-cent (less than 35 years old) toabout 11.5 percent (65 years andover). For all ages, about 9.7 per-cent of net worth was in 401K andthrift savings plans, but this pro-portion ranged from18.2 percentfor householders 35 to 44, whoare generally employed, to only2.7 percent for those 65 years andover, who were most likely retiredand beginning withdrawals fromtheir pension savings.14

14 For a further discussion of the relation-ship between employment and retirementincome see Patrick Purcell, “Retirement Savingsand Household Wealth in 2000: Analysis ofCensus Bureau Data,” Congressional ResearchService Report for Congress, Order CodeRL30922, updated December 12, 2002.

NET WORTH BY RACE ANDHISPANIC ORIGIN

Like income and age, the race andHispanic origin of the householderand the level of household networth show a significant relation-ship. In 2000, households withnon-Hispanic White householdershad a median net worth of$79,400; those with Black house-holders, $7,500 ; and those withHispanic householders, $9,750(Figure 6).15 Non-Hispanic Whitehouseholds in every income quin-tile had significantly higher levelsof median net worth than theirBlack and Hispanic counterparts(Table H). In the lowest quintile in2000, the median net worth fornon-Hispanic White householdswas $24,000; for Black house-holds, $57; and for Hispanichouseholds, $500; the correspon-

15 The median net worth difference betweenHispanic and Black households is not statistical-ly significant.

ding figures for the highest quintile were $208,023, $65,141,and $73,032, respectively.

Between 1998 and 2000, the medi-an net worth of non-Hispanic Whitehouseholders jumped by over$8,000, while the median networth of Black and Hispanic house-holders also experienced signifi-cant increases.

As Table I illustrates, Black house-holds and Hispanic householdsheld a significantly higher propor-tion of their net worth in durablegoods, such as housing and motorvehicles, than their non-HispanicWhite counterparts. But, Black andHispanic households had a signifi-cantly lower proportion in financialassets such as stocks and mutualfund shares, and in interest-earn-ing assets at financial institutions,compared with non-Hispanic Whitehouseholds. The percentage ofnet worth in retirement accounts(IRA, Keogh accounts, 401K, thrift

Figure 5.

Median net worthMedian net worth, excluding home equity

Less than 35 years

35 to 44 years

45 to 54 years

55 to 64 years

65 to 69 years

70 to 74 years

75 years of age and older

Median Net Worth and Median Net Worth Excluding Home Equity of Households by Age of Householder: 2000(2000 dollars)

19,025

114,05027,588

112,04832,304

83,150

44,27513,100

7,2403,300

23,525

100,100

120,00031,400



savings plans) was significantly NET WORTH BY 27.0 percent of the married-couplehigher for non-Hispanic White HOUSEHOLD TYPE figure, while female-householdershouseholds compared with Black had $23,028, or 25.2 percent of

Married-couple households had and Hispanic households. the married-couple figure. the largest median net worth in2000, $91,218 (Figure 7) among Table J expands the data shown inhouseholders by type. Households Figure 7, and reveals that married-with a male-householder had a couple households had the largestmedian net worth of $24,659, or median net worth figures in both

Table G.Percent Distribution of Net Worth of Households by Age of Householder and Asset Type:1998 and 2000(Excludes residents of group quarters)

Asset type

2000 1998

Total

Lessthan

35years

35 to44

years

45 to54

years

55 to64

years

65years

andover Total

Lessthan

35years

35 to44

years

45 to54

years

55 to64

years

65years

andover

Total net worth . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Interest-earning assets atfinancial institutions. . . . . . . . . . . 8.9 10.8 6.8 6.4 7.0 10.9 8.1 8.0 6.7 6.4 6.9 10.9

Other interest-earning assets . . . 1.7 0.3 0.9 1.4 1.7 4.2 2.7 1.1 1.1 1.8 2.1 4.9Checking accounts . . . . . . . . . . . . 0.3 0.9 0.4 0.4 0.3 0.4 0.4 1.3 0.4 0.4 0.3 0.4Stocks and mutual fund shares . 15.6 13.7 19.1 16.9 17.2 22.1 18.8 14.2 19.5 17.1 17.2 21.6Own home . . . . . . . . . . . . . . . . . . . 32.3 35.6 39.8 37.7 35.1 49.8 33.7 39.0 32.9 31.1 31.4 36.6Rental property . . . . . . . . . . . . . . . 3.7 2.6 3.2 4.0 5.2 5.1 4.5 3.1 4.6 3.8 6.6 3.8Other real estate . . . . . . . . . . . . . . 3.6 3.2 4.1 4.6 6.1 2.9 3.2 2.6 3.0 3.7 4.1 2.5Vehicles . . . . . . . . . . . . . . . . . . . . . . 3.7 9.5 5.8 4.3 3.5 3.0 4.4 12.8 5.8 4.4 3.3 2.9Business or profession . . . . . . . . . 7.7 14.0 9.8 8.7 6.3 2.4 7.3 17.0 10.5 9.5 6.7 2.5U.S. savings bonds . . . . . . . . . . . . 0.5 0.6 0.5 0.4 0.7 0.7 0.6 0.6 0.6 0.5 0.4 0.9IRA or Keogh accounts . . . . . . . . 8.6 4.1 8.2 7.6 12.5 11.5 7.9 3.7 5.1 7.3 11.7 8.0401K and thrift savings plans . . . 9.7 12.6 18.2 16.4 12.4 2.7 8.6 11.5 12.4 14.3 8.2 1.7Other financial investments 1 . . . 1.6 1.7 1.4 1.6 1.5 2.7 2.6 1.6 2.1 1.6 2.9 3.6Unsecured liabilities 2 . . . . . . . . . . –3.1 –15.1 –6.0 –3.6 –1.9 –1.0 –3.4 –16.6 –4.8 –4.0 –2.8 –0.6

1 Includes mortgages held for sale of real esate, amount due from sale of business or property, and other financial assets.2 Because net worth is assets less liabilities, unsecured liabilities are subtracted from the distribution of net worth and are shown as negative.

Note: Individual outliers that highly influenced the mean value for asset categories were topcoded or excluded. The mean is used to calculate the percentdistribution. The outlier adjustments to the individual assets and not the totals led to columns not summing to 100 percent.


Figure 6.


All households

Non-Hispanic White Householders

Black householders

Hispanic householders

Median Net Worth and Median Net Worth Excluding Home Equity of Households by Race and Hispanic Origin of Householder: 2000(2000 dollars)

9,750

1,166

79,400

55,00013,473

22,566

1,850

7,500



1998 and 2000 in all age cate- NET WORTH BY was not significantly different fromgories. Married-couple households EMPLOYMENT STATUS 1998 ($1,043). For those withouthad median net worth that was labor force activity (not working,

The median net worth in bothgenerally two or three times as not looking for work, and not on2000 and 1998 varied by thelarge as for other types of house- layoff), a group that includes manyemployment status of the house-holds. The net worth for female retired people, the median washolder. The median for all householders trailed that for male $28,543 ($20,562 in 1998).households with householdershouseholders in the two youngestunder 65 years of age in 2000 wasage categories, but was not signifi-$41,692 ($35,890 in 1998) cantly different in the two oldest.(Table K). For householders whohad a job for the entire 4 monthscovered in the SIPP survey, themedian was $51,050 ($45,922 in1998). The median for those whodid not have a job during thistime, but who looked for work orwere on layoff, was $3,250 which

Table H.Median Net Worth and Median Net Worth Excluding Home Equity of Households byMonthly Household Income Quintile and Race and Hispanic Origin of Householder:1998 and 2000(In 2000 dollars. Excludes residents of group quarters)

Monthly household income quintile1Total Non-Hispanic White Black Hispanic origin 2

2000 1998 2000 1998 2000 1998 2000 1998

All households (thousands) . . . . . . . . . . . . . . 104,644 101,782 79,562 78,140 12,808 12,156 9,264 8,587Median measured net worth (dollars) . . . . . 55,000 49,932 79,400 70,954 7,500 6,200 9,750 7,189

Excluding home equity . . . . . . . . . . . . . . . .

Net Worth by Income

Lowest quintile:

13,473 12,440 22,566 20,106 1,166 1,024 1,850 1,823

Households (thousands) . . . . . . . . . . . . . . 20,937 20,385 13,992 13,529 4,007 3,998 2,314 2,316Median measured net worth (dollars) . . . 7,396 6,073 24,000 18,979 57 (NA) 500 521

Excluding home equity . . . . . . . . . . . . . .

Second quintile:

1,025 938 3,466 2,945 (NA) (NA) 50 21

Households (thousands) . . . . . . . . . . . . . . 20,937 20,347 15,274 15,010 2,943 2,771 2,296 2,091Median measured net worth (dollars) . . . 26,950 24,841 48,500 44,373 5,275 5,709 5,670 3,493


Third quintile:

6,349 6,177 10,825 9,489 1,125 1,043 1,500 1,044



Fourth quintile:

12,333 11,828 17,400 16,878 3,350 3,088 2,650 4,171



Highest quintile:

26,998 22,909 34,435 29,920 8,625 7,664 10,543 8,349

Households (thousands) . . . . . . . . . . . . . . 20,923 20,354 17,518 17,420 1,505 1,201 1,080 896Median measured net worth (dollars) . . . 185,500 161,174 208,023 181,016 65,141 57,736 73,032 77,498

Excluding home equity . . . . . . . . . . . . . . 98,510 82,947 115,658 94,656 20,975 15,721 25,639 24,483

NA Not available.1Quintile upper limits for 2000 were: lowest quintile - $1,304; second quintile - $2,426; third quintile -

were: lowest quintile - $1,194; second quintile - $2,006; third quintile - $3,463; fourth quintile - $5,417.2People of Hispanic origin may be of any race.




Table I.Percentage Distribution of Net Worth of Households by Asset Type by Race and HispanicOrigin of Householder: 1998 and 2000(Excludes residents of group quarters)

Asset typeTotal Non-Hispanic White Black Hispanic origin1

2000 1998 2000 1998 2000 1998 2000 1998

Total net worth (percent) . . . . . . 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Interest-earning assets at financialinstitutions . . . . . . . . . . . . . . . . . . . . . . . 8.9 8.1 9.2 8.2 6.6 5.9 6.7 5.9

Other interest-earning assets. . . . . . . . 1.7 2.7 1.8 2.8 0.8 0.8 0.5 0.9Regular checking accounts . . . . . . . . . 0.3 0.4 0.3 0.4 0.5 0.8 0.9 0.9Stocks and mututal fund shares . . . . . 15.6 18.8 16.2 19.6 4.0 6.3 8.3 8.3Own home . . . . . . . . . . . . . . . . . . . . . . . . 32.3 33.7 31.0 32.6 61.8 59.2 50.8 48.0Rental property . . . . . . . . . . . . . . . . . . . 3.7 4.5 3.6 4.5 5.6 2.6 4.7 5.1Other real estate . . . . . . . . . . . . . . . . . . 3.6 3.2 3.7 3.2 2.9 2.7 4.3 4.1Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 4.4 3.5 4.2 9.7 9.3 5.9 8.0Business or profession . . . . . . . . . . . . . 7.7 7.3 7.6 6.9 5.2 8.1 10.5 13.0U.S. savings bonds . . . . . . . . . . . . . . . . 0.5 0.6 0.5 0.6 0.3 0.4 0.3 0.2IRA or Keogh accounts . . . . . . . . . . . . . 8.6 7.9 9.0 8.2 2.3 2.2 5.3 4.6401K and thrift savings plans . . . . . . . 9.7 8.6 9.6 8.5 6.7 10.6 9.9 8.0Other financial investments . . . . . . . . . 1.6 2.6 1.6 2.7 0.9 1.5 2.7 2.5Unsecured liabilities2 . . . . . . . . . . . . . . . –3.0 –3.4 –2.6 –3.1 –11.0 –10.6 –8.7 –9.4

1People of Hispanic origin may be of any race.2Because net worth is assets less liabilities, unsecured liabilities are subtracted from the distribution of net worth and are shown as negative.

Note: Individual outliers that highly influenced the mean value for asset categories were topcoded or excluded. The mean is used to calculate the percentdistribution. The outlier adjustments to the individual assets and not the totals led to columns not summing to 100 percent.


Figure 7.


Female householders

Male householders

Married couple households

All households

Median Net Worth and Median Net Worth Excluding Home Equity of Households by Type of Householder: 2000(2000 dollars)

55,000

27,675

24,659

23,0285,000

7,546

13,473

91,218



Table J.Median Net Worth and Median Net Worth Excluding Home Equity of Householdby Type of Household and Age of Householder: 1998 and 2000(Excludes residents of group quarters. Number of households in thousands)

Type of household by ageof householder

2000 1998

Number ofhouseholds

Median net worth

Number ofhouseholds

Median net worth(In 2000 dollars)

TotalExcluding equity

in own home TotalExcluding equity

in own home

Married-couple households . . . 56,700 91,218 27,675 55,432 82,129 24,373Less than 35 years . . . . . . . . 10,992 17,350 5,850 11,713 16,036 6,57235 to 54 years. . . . . . . . . . . . . 28,057 93,225 31,780 26,797 83,651 28,23055 to 64 years. . . . . . . . . . . . . 8,484 172,425 73,962 7,867 152,752 63,58665 years and over . . . . . . . . . 9,166 173,950 57,586 9,055 164,747 55,176

Male householders. . . . . . . . . . . 18,146 24,659 7,546 17,123 19,681 6,371Less than 35 years . . . . . . . . 5,219 6,250 4,125 5,174 5,835 3,75435 to 54 years . . . . . . . . . . . . 7,640 31,166 9,023 7,087 21,040 6,73155 to 64 years . . . . . . . . . . . . 2,010 48,700 10,400 1,741 45,019 9,74665 years and over . . . . . . . . . 3,276 84,000 15,375 3,121 73,848 19,304

Female householders . . . . . . . . 29,798 23,028 5,000 29,227 19,740 4,591Less than 35 years . . . . . . . . 6,152 1,500 750 6,406 621 25035 to 54 years. . . . . . . . . . . . . 10,366 16,850 4,350 9,938 14,363 3,99555 to 64 years. . . . . . . . . . . . . 3,644 50,380 8,700 3,375 49,136 6,56965 years and over . . . . . . . . . 9,637 76,000 10,475 9,508 75,127 10,826


Table K.Median Net Worth of Households by the Labor Force Activity During the 4 MonthReference Period of Householders Under 65 Years of Age: 1998 and 2000(Excludes residents of group quarters. Number of households in thousands)

Labor force activity of householdersunder 65 years of age

2000 1998

Number ofhouseholds

Median measurednet worth

Number ofhouseholds

Median measurednet worth

(2000 dollars)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,564 41,692 80,099 35,890

With labor force activity in the past 4 months . . . . . . . . . . . . . 70,175 44,320 67,694 39,075With a job during the entire 4 months . . . . . . . . . . . . . . . . . . 62,781 51,050 60,196 45,922With a job during some of the 4 months. . . . . . . . . . . . . . . . 6,735 6,166 6,721 5,870No job during the entire 4 months, spent time looking or

on layoff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660 3,250 777 1,043

No labor force activity during the past 4 months. . . . . . . . . . . 11,912 28,543 11,862 20,562



USER COMMENTS ACCURACY OF THE national population by age, race,ESTIMATES sex, and Hispanic origin. This

The Census Bureau welcomes the weighting partially corrects forcomments and advice of data Statistics from surveys are subject bias due to undercoverage, butusers. If you have suggestions or to sampling and nonsampling biases may still be present whencomments, please write to: error. All comparisons presented in people who are missed by the sur-

this report have taken samplingDaniel Weinberg vey differ from those interviewed

error into account and are signifi-Chief, Housing and Household in ways other than the age, race,

cant at the 90-percent confidenceEconomic Statistics Division sex, and Hispanic origin. How this

level. This means the 90-percentU.S. Census Bureau weighting procedure affects other

confidence interval for the differ-Washington, DC 20233-8500 variables in the survey is not pre-

ence between the estimates being cisely known. All of these consid-or contact: compared does not include zero. erations affect comparisons across

Nonsampling errors in surveys different surveys or data sources.Labor Force and Transfer Program may be attributed to a variety ofStatistics Branch sources, such as how the survey For further information on the

Thomas Palumbo was designed, how respondents source of the data and accuracy of301-763-3230 interpret questions, how able and the estimates including [email protected] willing respondents are to provide errors and confidence intervals,

correct answers, and how accu- go to www.sipp.census.gov/sipp/rately the answers are coded and sourceac/s&a96_040501.pdf classified. The Census Bureau or contact Reid Rottach of theemploys quality control procedures Census Bureau Demographicthroughout the production process Statistical Methods Division on theincluding the overall design of sur- Internet atveys, the wording of questions, [email protected] of the work of interviewers

For further information on statisti-and coders, and statistical review

cal standards and the computationof reports to minimize these

and use of standard errors, contacterrors.

Charles D. Sissel, DemographicThe Survey of Income and Program Statistical Methods Division, atParticipation weighting procedure 301-763-5922,uses ratio estimation, whereby [email protected] estimates are adjusted toindependent estimates of the


Appendix A. COMPARISONS OF SURVEY OF INCOME AND PROGRAM PARTICIPATION DATA WITH DATAFROM THE SURVEY OF CONSUMER FINANCES

This appendix examines data qual-ity in SIPP by comparing wealthdata from the Survey of Incomeand Program Participation (SIPP)with data from the 1998 Survey ofConsumer Finances (SCF). For anysurvey, an important determinantof data quality is the accuracy ofreported and imputed amounts.Response errors in wealth data, forexample, can result from a varietyof factors, including randomresponse error, misreporting of orfailure to report asset ownership,and misreporting of asset and lia-bility values. The extent of surveyresponse error can be measured bycomparing survey estimates withindependently derived estimates,which is what is attempted herefor SIPP wealth data. A caveatapplicable to this analysis is thatthe accuracy of such measure-ments is often impaired by differ-ences between surveys in areassuch as population coverage, refer-ence periods, collection and pro-cessing methods, and data collec-tion and tabulation categories.

The SIPP-SCF comparisons in thisappendix were made with previ-ously-published data that were notspecifically tabulated for the pur-pose of making suchcomparisons.1 In particular, theexisting tabulation categoriesrestrict the number and kinds ofcomparisons that could be madefor particular types of assets. Theasset types for which data weretabulated in either survey oftenhad no exact counterpart in theother; even groupings of asset

1This appendix represents a first attempt,and not an in-depth effort, to benchmark theSIPP data against an independent source.Planned future research will attempt to retabu-late the data from the original SIPP and SCFdatasets for comparable universes for the mostdetailed asset-type categories in each.

categories in the one were often individual or couple in the house-only approximate matches for hold and all other persons in thegroupings of the other. Table A-1 household who are financiallypresents in columns 1 and 2 the dependent on that person or thoseasset categories used in the two persons. The SCF definition of fam-surveys, and in columns 3 and 4 ily includes people who live inoffers more complete explanations group quarters, such as boardingof the asset categories to assist houses, college dormitories, andthe reader. The reader is cau- facilities shared by members of ationed that the individual map- religious community. pings between the SIPP and SCF

The SIPP data in this appendixcategories vary in the degree of

were extracted from the tables incomparability.

the body of this present report, asThe SCF is a triennial survey of well as from the detailed tables forU.S. families sponsored by the this report located at www.sipp.Board of Governors of the Federal census.gov/sipp/pubsmain.htm.Reserve System with the coopera- They were collected in wave 6 oftion of the U.S. Department of the the 1996 panel, and represent theTreasury. The survey is designed to wealth holdings of the householdsprovide detailed information for in the U.S. civilian noninstitutionalU.S. families on their balance population in the period ofsheets and their use of financial December 1997 through Marchservices, as well as on their pen- 1998. The SIPP defines a house-sions, labor force participation, hold as all the people who occupyand demographic characteristics at a housing unit; in a further depar-the time of the interview. For a ture from the SCF definition ofdetailed description of the survey, “family,” the SIPP definition ofsee www.federalreserve.gov/pubs/ “household” does not include peo-oss/oss2/98/scf98home.html. ple living in group quarters.

The 1998 SCF data in this appen- Table A-2 compares the SIPP anddix were derived from the pub- SCF estimates of median net worthlished figures in the paper “Recent by selected household characteris-Changes in U.S. Family Finances: tics. The SIPP estimate for house-Results from the 1998 Survey of holds in general, $47,900, is aboutConsumer Finances,” by Arthur B. 67 percent of the SCF estimate ofKennickell, Martha Starr-McCluer $71,600. The comparisons for par-and Brian J. Surette at the Web site: ticular kinds of households showwww.federalreserve.gov/pubs/oss/ similar shortfalls in the SIPP.oss2/98/bull0100.pdf. The data Differences in survey universeswere collected by the National and coverage may be factors inOpinion Research Center at the some of these differences. The SCFUniversity of Chicago between July is predominately intended to meas-and December of 1998. They rep- ure family wealth and is moreresent the wealth holdings of U.S. comprehensive than SIPP in its cov-“families” in the latter half of 1998. erage of asset holdings; unlike theA family, or primary economic SCF, SIPP does not measure equi-unit, as defined by the SCF, is the ties in pension plans, cash surren-economically dominant single der value of life insurance policies,


and value of household furnishings Example 2 – Table A-3, compari- the SIPP-SCF mappings discussedsuch as antiques, art, and jewelry. son of row 1 under “Financial above is probably reflected, how-Also, the 1998 SCF included a spe- assets”: ever, in these tables. For example,cial oversample of relatively there is more consistency for the

Table A-1 shows that the SCF cate-wealthy individuals; the SIPP sam- home-ownership (“own home—pri-

gorizes as “transaction accounts,”ple, in contrast, oversampled the mary residence”) and vehicles cate-

the kinds of detailed asset typeslow- income population for the gories than for the real estate

most closely found in the two SIPP1996 panel rather than the (“rental property— other residential

categories, “interest-earning assetswealthy. property”) category. The Table A-3

at financial institutions” andfigures for the former categories

The groupings developed in “checking accounts.” So, in (own home: SIPP— 66.4 percent;

Table A-1 are used in Tables A-3 Table A-3 , the asset ownershipprimary residence: SCF— 66.2 per-

and A-4 to compare asset owner- rates of these two SIPP categories,cent; vehicles: SIPP — 85.3 per-

ship rates and median values of 63.9 percent and 38.9 percent,cent; SCF — 82.8 percent) compare

holdings for selected asset types. respectively, are shown in very favorably, whereas the com-

The following examples show how column 3, next to the correspon-parison for rental property, SIPP—

to read these tables: ding rate of 90.5 percent for SCF5.4 percent; and other residential

“transactions accounts.” The SIPPExample 1 – Table A-3, compari- property, SCF — 12.8 percent,

percentages are shown separatelyson of row 3 under “Financial reflects considerable variation in

because they were taken fromassets”: detailed components. The glaring

published figures in which thedifference in Table A-4 in median

Table A-1 shows that the the SIPP same households may, but do notvalue of holdings between “SIPP:

category “U.S. savings bonds” is necessarily need to be, represent-business or profession” (median :

most comparable with the SCF cat- ed in both categories; the two fig-$7,000) and “SCF: business equi-

egory called “Savings bonds.” So, ures therefore cannot be summedty”(median: $60,000) is difficult to

in Table A-3 , the asset ownership without the risk of double-count-explain, although some of it is

rate in SIPP for “U.S. savings ing. Such mappings are made inprobably related to conceptual

bonds,” 16.3 percent, is shown in the table merely to give the readerconsistency.

column 3, next to the correspon- an idea of the possible range of

ding rate of 19.3 percent for the the SIPP (or SCF) data. As additional research into the dif-

SCF category “Savings bonds.” ferences is completed, it will beThe SIPP and the SCF compare rea-

published as SIPP working paperssonably well in most of the dimen-

or with the next report in thissions shown in Tables A-3 and A-4.

series.The variation in comparability of

Table A-1.Detailed Components of Corresponding Groupings of Asset Types: 1998

Corresponding asset-type groupings Detailed components

1998 SIPP 1998 SCF 1998 SIPP 1998 SCF

Financial AssetsInterest-earning assets atfinancial institutions . . . . . . . . . . . .

Regular checking accounts . . . . . .

Certificates of deposit. . . . . . . . . . .

Stocks and mutual funds . . . . . . . .

U.S. savings bonds . . . . . . . . . . . .IRA or Keogh accounts. . . . .. . . . .

401(k) and thrift savings plans . . .Other interest-earning assets . . . .

U.S. government securities . . . . . .

Municipal and corporate bonds. . .

(NA) . . . . . . . . . . . . . . . . . . . . . . . . .Other financial investments . . . . . .

Nonfinancial AssetsOwn home . . . . . . . . . . . . . . . . . . . .

Rental property . . . . . . . . . . . . . . . .

Financial Assets

Transaction accounts. . . . . .

. . . . . . . . . . . . . . . . . . . . . . . .

Certificates of deposit . . . . .

Stocks . . . . . . . . . . . . . . . . . .

Mutual funds . . . . . . . . . . . . .

Savings bonds . . . . . . . . . . .Retirement accounts . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . .Bonds. . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . .

Life insurance . . . . . . . . . . . .Other managed accounts . .

Other . . . . . . . . . . . . . . . . . . .

Nonfinancial AssetsPrimary residence . . . . . . . .

Other residential property . .

Interest-earning assets at financialinstitutions include passbook savingsaccounts, money market depositaccounts, certificate of deposit, andinterest-earning checking accounts.Checking accounts include non-interest earning checking accounts.Certificates of deposit or other savingscertificates.Equity in stocks, including bothcommon and preferred stock in privatecorporations. Does not include sharesof stock in any closely-heldcorporations. Equity in mutual fundshares, including shares in any mutualfund which invests in stocks.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Series E or EE U.S. savings bonds.Individual retirement accounts orKeogh (or H.R. 10) plans.

Includes 401(k) and thrift plans.Other interest-earning assets includemunicipal or corporate bonds and U.S.government securities.

U.S. government securities includeTreasury bills, Treasury notes, andTreasury bonds. Also includes SeriesH and HH U.S. savings bonds. Alsoincludes credit instruments or agenciessuch as Fannie Mae.Municipal or corporate bonds includemarketable securities (other thanstocks), such as bills, certificates,notes, bonds, or debentures issued bystate or local governments or domesticcorporations.Not collected in SIPP.Other financial investments includemortgages held for sale of real estate,amount due from sale of business orproperty, and other financial assetssuch as investments in a noncorporatebusiness venture managed by others(e.g. a limited partnership),investments in a corporation, andother investments not reportedelsewhere (e.g. part ownership of arace horse).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Equity in primary home, owned orbeing bought by someone inhousehold.Equity in rental property includesresidential, commercial, industrial,and/or land rental property as well asequipment which is rented out, suchas tractors, computers, etc.

Checking, savings, and money marketdeposit accounts, money market mutualfunds and call accounts at brokerages.

Certificates of deposit

Stocks other than those held throughmutual funds, retirement accounts, orother managed assets.

Mutual funds excluding money marketfunds or funds held through retirementaccounts or other managed assets.Mutual fund in the SCF also includebond and combo funds.Savings bondsIncludes IRAs, Keogh accounts, andcertain employer-sponsored accounts.Includes 401(k) and thrift accounts.

Bonds, excluding savings bonds andbonds held through mutual funds,retirement accounts, and othermanaged assets.

Cash value life insurance.Managed assets include personalannuities, trusts with an equity interest,and managed investment accounts.

Includes a heterogeneous category,including oil and gas leases, futurecontracts, royalties, proceeds fromlawsuits, or estates in settlements andloans made to others.

Home ownership, primary place ofresidence.

Includes second home, timeshares,one- to four-family rental properties,and other types of residential rentalproperty. Includes mortgages owed tothe household and vacation homes.



Table A-1.Detailed Components of Corresponding Groupings of Asset Types: 1998—Con.

Corresponding asset-type groupings Detailed components

1998 SIPP 1998 SCF 1998 SIPP 1998 SCF

Other real estate. . . . . . . . . . . . . . .

Vehicles . . . . . . . . . . . . . . . . . . . . . .

Business or profession. . . . . . . . . .

(NA) . . . . . . . . . . . . . . . . . . . . . . . . .

Equity in nonresidentialproperty . . . . . . . . . . . . . . . .

Vehicles . . . . . . . . . . . . . . . . .

Business equity . . . . . . . . . .

Other . . . . . . . . . . . . . . . . . . .

Equity in other real estate includesvacation homes and land holdings.

Equity in vehicles include cars, trucks,vans, motorcycles, boats, and RVs.Does not include leased vehicles orcompany cars.

Equity in one’s own business orprofession, excluding investments in anoncorporate business venturemanaged by others (e.g. a limitedpartnership), investments in acorporation.

Not collected in SIPP.

Includes commercial properties, rentalproperties with five or more units,farmland, undeveloped land and allother types of nonresidential real estate(except property owned through abusiness).Includes automobiles, vans, trucks,SUVs, motorcycles, airplanes, andboats that are used for personal use.Does not include leased vehicles orbusiness-owned vehicles used forpersonal use.Includes sole proprietorships, limitedpartnerships, subchapter Scorporations, other types ofcorporations that are not publicly tradedand other types of private businesses.Also includes nonactively managedbusiness interests.A broad category, including artwork,jewelry, precious metals, and antiques.

Source: Survey of Income and Program Participation, 1996 panel and 1998 Survey of Consumer Finances.

Table A-2.Median Net Worth by Household Characteristics: 1998(In thousands of dollars)

Household characteristic1998 SIPP 1998 SCF

Estimate Standard Error Estimate Standard Error

Total households. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Age of Householder

Less than 35 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 to 44 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 to 54 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 to 64 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 years and over, total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

65 to 74 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 years and over . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Education of Householder

No high school diploma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .High school diploma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Some college . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Associate’s degree . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Bachelor’s degree or higher . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Race and Hispanic Origin of Householder

White, not of Hispanic origin . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Region

Northeast. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Midwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .South . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .West. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Housing Tenure

Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Renter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

47.9

6.336.772.499.1

101.1(NA)93.2

15.641.540.752.3

111.3

68.0

63.059.637.743.2

97.21.4

0.50

0.230.791.662.711.89(NA)2.48

0.390.791.011.662.22

0.78

1.521.230.671.00

0.920.08

71.6

9.063.4

105.5127.5(NA)

146.5125.6

20.953.873.9(NA)

146.4

94.9

94.280.361.361.3

132.14.2

4.1

(NA)(NA)(NA)(NA)(NA)(NA)(NA)

(NA)(NA)(NA)(NA)(NA)

(NA)

(NA)(NA)(NA)(NA)

(NA)(NA)

NA Not available.

Note: Standard errors are shown when available.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel and 1998 Survey of Consumer Finances.


Table A-3.Asset Ownership Rates by Asset Type: 1998(Percentage of total households who hold the asset type)

SIPP category Corresponding SCF category 1998 SIPP estimate 1998 SCF estimate

Financial assets: Financial assets:Interest-earning assets at financial institutions . . . Transaction accounts . . . . . . . . . . . . . . . . . . . . 63.9 90.5Regular checking accounts . . . . . . . . . . . . . . . . . . . . 38.9 (NA)Stocks and mutual funds . . . . . . . . . . . . . . . . . . . . . . Stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mutual funds . . . . . . . . . . . . . . . . . . . . . . . . . . .27.1(NA)

19.216.5

U.S. savings bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . Savings bonds. . . . . . . . . . . . . . . . . . . . . . . . . . 16.3 19.3IRA or Keogh accounts . . . . . . . . . . . . . . . . . . . . . . . Retirement accounts. . . . . . . . . . . . . . . . . . . . . 21.3 48.8401K and thrift savings plans . . . . . . . . . . . . . . . . . . 26.8 (NA)Other interest-earning assets . . . . . . . . . . . . . . . . . . Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.9 3.0Other financial investments . . . . . . . . . . . . . . . . . . . . Other managed accounts . . . . . . . . . . . . . . . .

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.7

(NA)5.99.4

Nonfinancial assets: Nonfinancial assets:Own home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Primary residence. . . . . . . . . . . . . . . . . . . . . . . 66.4 66.2Rental property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other residential property . . . . . . . . . . . . . . . . 5.4 12.8Other real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Equity in nonresidential property . . . . . . . . . . 6.5 8.6Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85.3 82.8Business or profession . . . . . . . . . . . . . . . . . . . . . . . . Business equity . . . . . . . . . . . . . . . . . . . . . . . . . 11.5 11.5

NA Not applicable as a separate category for survey.


Table A-4.Median Value of Holdings by Selected Asset Type: 1998(In thousands of dollars)

SIPP category Corresponding SCF category1998 SIPP

1998 SCFestimateEstimate Standard error

Financial assets: Financial assets:Interest-earning assets at financial institutions . . . Transaction accounts . . . . . . . . . . . . 3.7 0.04 3.1Other interest-earning assets . . . . . . . . . . . . . . . . . . Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . 30.0 1.01 44.8U.S. savings bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . Savings bonds . . . . . . . . . . . . . . . . . . 0.8 0.02 1.0Stocks and mutual fund shares . . . . . . . . . . . . . . . . Stocks . . . . . . . . . . . . . . . . . . . . . . . . . 16.8 0.34 17.5

Mutual funds . . . . . . . . . . . . . . . . . . . . (NA) (NA) 25.0Other financial investments . . . . . . . . . . . . . . . . . . . . Other managed accounts . . . . . . . . . 23.4 1.03 31.5

Other . . . . . . . . . . . . . . . . . . . . . . . . . . (NA) (NA) 3.0

Nonfinancial assets: Nonfinancial assets:Own home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Primary residence . . . . . . . . . . . . . . . 53.0 0.45 57.0Rental property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other residential property. . . . . . . . . 57.0 1.94 65.0Other real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Equity in nonresidential property. . . 30.0 0.98 38.0Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vehicles . . . . . . . . . . . . . . . . . . . . . . . . 5.8 0.05 10.8Business or profession . . . . . . . . . . . . . . . . . . . . . . . . Business equity . . . . . . . . . . . . . . . . . 7.0 0.43 60.0

NA Not applicable as a separate category for survey.

Note: Standard errors are shown when available.



Appendix B. CHANGES IN MEDIAN ESTIMATION FROM PRE-1995 REPORTS

This report uses an estimation grouped data for median estima- robust and efficient (seetechnique for the median that dif- tion (see Appendix C in the 1991 Rousseeuw, Peter J. andfers from the one used for the pre- Household Wealth and Asset Christopher Croux, 1993,1995 SIPP reports in this series on Ownership report (P70-34) avail- “Alternatives to Median Absolutehousehold wealth and asset owner- able at the following Web address: Deviation,” Journal of the Americanship. The estimation technique in www.sipp.census.gov/sipp/ Statistical Association. 88:1273-this report uses a “traditional” pubsmain.htm). The median inter- 83). When comparing the datamedian estimation procedure that polation value and its standard from past reports with data fromlines up all the values from lowest error can vary widely depending this report, the standard error ofto highest; the value correspon- on the intervals chosen for use in each estimate must be pooled toding to the 50th percentile then the formula. The “traditional” test for statistically significant dif-becomes the median. (Respondents median estimation does not rely on ferences between the estimatestend to round off responses to the interpolation within grouped data (see the Source and Accuracynearest hundred and/or thousand, and is easily replicated. Statement for the 1992 panel forand this tendency is reflected in Furthermore, the standard error details go to www.sipp.census.gov/the median values throughout the estimate for the “traditional” medi- sipp/methmain.htm).report.) In past reports, an inter- an estimate produces much smallerpolation formula was used on standard errors that are both

Appendix C. INFLATION-ADJUSTMENT (CONSTANT-DOLLAR) METHODOLOGY

To be consistent with the practice The adjustment factor was calcu- values for the reference period forof the Current Population Survey lated by taking the average of the the SIPP 1998 data (Novemberand the Survey of Consumer 2000 CPI-U-RS values for the 1997, December 1997, JanuaryFinances, this report used an 4 months in the SIPP reference 1998 and February 1998). The adjustment factor based upon the period for the 2000 data CPI-U-RS values were obtained fromConsumer Price Index Research (November 1999, December 1999, www.bls.gov/cpi/cpiurstx.htm.Series Using Current Methods (CPI- January 2000 and February 2000) The resulting adjustment factor forU-RS) to inflate current 1998 dollar and dividing this average by the 1998 was 245.9/235.825=1.0427. values to constant 2000 levels. average of the 1998 CPI-U-RS

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