“Do the rich save more? Evidence from linked survey and administrative data,”
The nature of the relationship between lifetime income and saving rates is a longstanding empirical question and one that has been surprisingly difficult to answer. The authors use a new data set containing both individual survey data on wealth holdings and administrative data on earnings histories to examine this question. They find, for a sample of English households, evidence of a positive relationship between the rate of private wealth accumulation and levels of lifetime earnings.