CURRENT POPULATION REPORTS

Household Economic Studies

P70-47

Asset

Ownership of

Households:

1993

The Survey of Income and Program Participation

by T.J. Eller and Wallace Fraser

U.S. Department of Commerce

Economics and Statistics Administration

BUREAU OF THE CENSUS
Highlights

x Median net worth, as measured in the Survey of Income and Program Participation (SIPP), for

households in 1993 was $37,587 (± $1,250), not significantly different from the 1991 median

household net worth of $38,500 (± $1,387) (in 1993 dollars).

x Median home equity for households whose householders owned their own homes increased

between 1991 and 1993 from $43,070 (± $1,738) in 1991 (in 1993 dollars) to $46,669 (± $1,153)

in 1993.

x During the period 1991 to 1993, there were declines in the median values of interest-earning

assets at financial institutions, other interest-earning assets, rental property, vehicles, and

businesses or professions. These declines were offset by increases in the median values of

stocks and mutual fund shares, home equity, and U.S. savings bonds. The median value of

holdings in checking accounts, other real estate, IRA or Keogh accounts, and other financial

investments did not change between 1991 and 1993.

x In 1993, median measured net worth varied from $5,786 (± $474) for the youngest households

to $91,481 (± $3,736) for households in the 55-to-64-year-old category. It was $77,654

(± $4,510) for the oldest group (75 years and over). Median measured net worth fell significantly

from 1991 to 1993 for households in 35-to-44-year-old and 65-to-69-year-old categories.

x In 1993, households with White householders had median measured net worth of $45,740

(± $1,307), households with Black householders had median measured net worth of $4,418

(± $697), and households with Hispanic-origin householders had a median measured net worth

of $4,656 (± $681), which was not significantly different from that of Black households.

x Married-couple households had the largest median measured net worth, $61,905 (± $1,614) in

1993. Both male- and female-maintained households had median measured net worth approximately one-fifth that of married-couple households in 1993.

x Households headed by females experienced a decline in their median measured net worth, from

$15,518 (± $1,506) (in 1993 dollars) in 1991 to $13,294 (± $1,112) in 1993. This decline was

concentrated among female householders age 35 to 54.

Acknowledgments

This report was prepared under the direction of Kathleen S. Short, Chief, Poverty and Health

Statistics Branch. Tables were prepared by Angela Feldman-Harkins, Chief, and Diana Lewis,

Computer Programming and Applications Staff. Statistical assistance was provided by Bernadette

Proctor. Word processing assistance was provided by Zana Colevas. General direction was

provided by Charles T. Nelson, Assistant Division Chief (Economic Characteristics), Housing and

Household Economic Statistics Division.

Survey design and data operations were coordinated by Enrique J. Lamas, Chief, Income

Surveys Branch, Demographic Surveys Division. Data processing activities were directed by

Donna Riccini, Chief, Income Surveys Programming Branch, Demographic Surveys Division.

Data collection was conducted by the Bureau of the Census interviewers under the overall

direction of Michael J. Longini, Chief, Field Division.

Sampling review was conducted by Vicki Huggins, Chief, Mark Hendrick, and Karen King,

Survey of Income and Program Participation Branch, Statistical Methods Division.

The staff of Administrative and Publications Services Division, Walter C. Odom, Chief, provided

publication planning, design, composition, editorial review, and printing planning and procurement.

Cynthia G. Brooks provided publication coordination and editing.
CURRENT POPULATION REPORTS

Household Economic Studies

P70-47

Issued September 1995

Asset

Ownership of

Households:

1993

The Survey of Income and Program Participation

by T.J. Eller and Wallace Fraser

U.S. Department of Commerce

Ronald H. Brown, Secretary

David J. Barram, Deputy Secretary

Economics and Statistics Administration

Everett M. Ehrlich, Under Secretary

for Economic Affairs

BUREAU OF THE CENSUS

Martha Farnsworth Riche, Director
ECONOMICS

AND STATISTICS

ADMINISTRATION

Economics and Statistics

Administration

Everett M. Ehrlich, Under Secretary

for Economic Affairs

BUREAU OF THE CENSUS

Martha Farnsworth Riche, Director

Bryant Benton, Deputy Director

Paula J. Schneider, Principal Associate

Director for Programs

Nancy M. Gordon, Associate Director

for Demographic Programs

HOUSING AND HOUSEHOLD

ECONOMIC STATISTICS DIVISION

Daniel H. Weinberg, Chief

SUGGESTED CITATION

Eller, T.J., and Wallace Fraser, Asset Ownership of Households: 1993

U.S. Bureau of the Census. Current Population Reports, P70-47

U.S. Government Printing Office, Washington, DC, 1995.

For sale by Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.
iii

Contents

Page

Highlights ........................................................................................... 1

Introduction......................................................................................... 1

Measured Net Worth of Households.............................................................. 3

Measured Net Worth by Income .................................................................. 5

Measured Net Worth by Age...................................................................... 6

Measured Net Worth by Race and Hispanic Origin ............................................. 8

Measured Net Worth by Type of Household ..................................................... 10

User Comments.................................................................................... 11

FIGURES

1. Distribution of Measured Net Worth by Asset Type: 1993 ............................. 4

2. Median Measured Net Worth by Age of Householder: 1993........................... 8

TEXT TABLES

A. Ownership Rates, Median Value of Asset Holdings, and the Distribution of

Measured Net Worth by Asset Type: 1993, 1991, 1988, and 1984.................. 3

B. Median Measured Net Worth and Distribution of Measured Net Worth by Monthly

Household Income Quintiles: 1993 and 1991 ......................................... 5

C. Percent of Households Owning Assets and Median Value of Holdings by Monthly

Household Income Quintile for Selected Asset Types: 1993 and 1991 ............. 6

D. Median Measured Net Worth by Age of Householder and Monthly Household

Income Quintile: 1993 and 1991 ....................................................... 7

E. Distribution of Measured Net Worth by Age of Householder and Asset Type: 1993

and 1991 .................................................................................. 9

F. Median Measured Net Worth by Race and Hispanic Origin of Householder and

Monthly Household Income Quintile: 1993 and 1991................................. 9

G. Median Measured Net Worth by Type of Household and Age of Householder: 1993 and 1991.................................................................. 10

APPENDIXES

A. Definitions and Explanations............................................................... A–1

Income Sources Included in Monthly Cash Income ................................... A–2

Assets and Liabilities Included in Net Worth ........................................... A–2

B. Source and Accuracy of the Estimates ................................................... B–1

Source of Data ........................................................................... B–1

Weighting Procedure .................................................................... B–2

Accuracy of Estimates................................................................... B–2

Use of Standard Errors .................................................................. B–3
APPENDIX TABLES

B–1. Household Sample Size by Month and Interview Status ................................ B–2

B–2. 1992 CPS Coverage Ratios ............................................................... B–3

B–3. Standard Errors of Ownership Rates, Median Value of Asset Holdings, and the

Distribution of Measured Net Worth by Asset Type: 1993, 1991, 1988, and 1984 . B–5

B–4 Standard Errors for the Median Measured Net Worth and Distribution of Measured

Net Worth by Monthly Household Income Quintiles: 1993 and 1991 ................ B–5

B–5. Standard Errors for Percent of Households Owning Assets and Median Value of

Holdings by Monthly Household Income Quintile for Selected Asset Types: 1993

and 1991 .................................................................................. B–6

B–6 Standard Errors for the Median Measured Net Worth by Age of Householder and

Monthly Household Income Quintile: 1993 and 1991................................. B–7

B–7 Standard Errors for Distribution of Measured Net Worth by Age of Householder and

Asset Type: 1993 and 1991 ............................................................ B–8

B–8 Standard Errors for the Median Measured Net Worth by Race and Hispanic Origin

of Householder and Monthly Household Income Quintile: 1993 and 1991 .......... B–8

B–9 Standard Errors for the Median Measured Net Worth by Type of Household and

Age of Householder: 1993 and 1991 .................................................. B–9

iv
Asset Ownership of Households: 1993

HIGHLIGHTS INTRODUCTION

x Median net worth, as measured in the Survey of This report presents data on the assets and liabilities Income and Program Participation (SIPP), for house- held by U.S. households in 1993. The data are from the holds in 1993 was $37,587 (± $1,250), not signifi- 1991 and 1992 panels of SIPP and represent informa- cantly different from the 1991 median household net tion collected in February through May of 1993 While worth of $38,500 (± 1. $1,387) (in 1993 dollars). SIPP was designed primarily to provide estimates of

x Median home equity for households whose house- income and government program participation, its asset holders owned their own homes increased between and liability data provide additional indicators of eco- 1991 and 1993 from $43,070 (± $1,738) in 1991 (in nomic well-being. These data, collected on a regular 1993 dollars) to $46,669 (± $1,153) in 1993. basis in a supplement to the survey, are also useful for

x During the period 1991 to 1993, there were declines modeling eligibility for government assistance programs.

in the median values of interest-earning assets at A household’s economic well-being depends on both

financial institutions, other interest-earning assets, its income and its asset accumulation, often referred to

rental property, vehicles, and businesses or profes- as its wealth. While income is the flow of resources to a

sions. These declines were offset by increases in the household, wealth is the level of resources at any point

median values of stocks and mutual fund shares, in time. Wealth, also called net worth, is a particularly

home equity, and U.S. savings bonds. The median important dimension of well-being for some subgroups

value of holdings in checking accounts, other real of the population such as the elderly, who tend to have

estate, IRA or Keogh accounts, and other financial lower retirement incomes but higher asset holdings.2

investments did not change between 1991 and 1993. This report looks at the value of interest-earning

assets, of stocks and mutual fund shares, of real estate, x In 1993, median measured net worth varied from of mortgages held by sellers, and of motor vehicles, as $5,786 (± $474) for the youngest households to well as the self reported value of own businesses or $91,481 (± $3,736) for households in the 55-to-64- professions, held by households in the contiguous United year-old category. It was $77,654 (± $4,510) for the States. The report also examines the value of measured oldest group (75 years and over). Median measured net worth, defined as the sum of measured assets less net worth fell significantly from 1991 to 1993 for measured liabilities such as debts secured by any asset, households in 35-to-44-year-old and 65-to-69-year- credit card or store bills, bank loans, and other unse- old categories. cured debts.

x In 1993, households with White householders had Measuring wealth is more complex than measuring median measured net worth of $45,740 (± $1,307), income. The market value of some assets, such as that

households with Black householders had median of a home, is difficult to determine precisely, on a regular measured net worth of $4,418 (± $697), and house- basis. The market value of other assets, such as stocks

holds with Hispanic-origin householders had a median and bonds, varies over time, making point-in-time esti- measured net worth of $4,656 (± $681), which was mates of their value difficult.

not significantly different from that of Black house- Some assets may be targeted for future consumption

holds. and are thus excluded from the analysis in this report.

x Married-couple households had the largest median For example, while life insurance policies generally have

measured net worth, $61,905 (± $1,614) in 1993.

Both male- and female-maintained households had 1

The reference point for the asset and liability questions was the median measured net worth approximately one-fifth last day of the 4-month reference period that preceded the interview.

that of married-couple households in 1993. As a result, the 1993 data presented in this report are an average of

balances held and owed at the end of the months of January, x Households headed by females experienced a decline February, March, and April 1993 and the 1991 data are the average of

in their median measured net worth, from $15,518 balances held and owed for January, February, March, and April of

(± $1,506) (in 1993 dollars) in 1991 to $13,294 1991. 2

See Daniel Radner, Measured Worth and Financial Assets of Age (± $1,112) in 1993. This decline was concentrated Groups in 1984, Social Security Bulletin, Volume 52, No. 3, March

among female householders age 35 to 54. 1989, pp 2-15.

1
a cash surrender value, they are usually not sold. Other distribution, but less sensitive to outliers. Therefore,

types of wealth, such as Social Security benefits or estimates of median measured net worth (measured

equities in pension plans, have a value to the perspec- assets less measured debts) from the two surveys are

tive recipient, but are not saleable. much closer than the estimates of mean measured net

Finally, some assets, such as household durable worth. The 1993 SIPP estimate of measured median net

worth was $37,587, and the 1991 SIPP estimate of goods are generally not considered subject to sale.

Additionally, these assets are difficult to value and may measured median net worth was $38,500 (in 1993

dollars), 71 percent of the 1992 SCF estimate of median have an intangible value not reflected in the market.

Therefore, this analysis does not cover equities in net worth of $53,800 (in 1993 dollars).

pension plans, the cash surrender value of life insurance All demographic surveys, including SIPP, suffer from

undercoverage of the population. This undercoverage policies, or the value of jewelry and home furnishings. results from missed housing units and missed persons Few household surveys provide information on asset within sample households. Compared to the level of the accumulation and debt holdings. The only other ongoing 1990 decennial census, overall SIPP undercoverage is survey that provides wealth information is the Survey of about 7 percent. Undercoverage varies with age, sex, Consumer Finances (SCF), conducted by the Federal

(FRB).3 and race. For some groups, such as 20 to 24 year old Reserve Board The SCF, which is designed Black males, the undercoverage is as high as about 27 specifically to analyze the financial portfolios of U.S. percent. It’s important to note that the survey undercov- families, is much more detailed in the classification of erage is in addition to the decennial census undercov- assets and liabilites than the SIPP. erage, which in 1990 was estimated to be about 1.5 Household surveys provide data on the asset and percent overall and about 8.5 percent for Black males. debt holdings of the population, but it should be noted The weighting procedures used by the Census Bureau that asset accumulation tends to be underreported in partially correct for the bias due to undercoverage. household surveys. Further, the distribution of asset However, its final impact on estimates is unknown. For accumulation is known to be highly concentrated among details, see appendix B. households with large asset holdings. The concentration Data for 1991, 1988, and 1984 were previously of asset accumulation and the paucity of observations published in Series P70-34, Household Wealth and

for high-income households may bias various asset Asset Ownership: 1991, Series P70-22, Household Wealth

accumulation statistics. and Asset Ownership: 1988, and Series P70-7, HouseSpecifically, we believe that SIPP provides biased hold Wealth and Asset Ownership: 1984, respectively.

estimates of the aggregate of asset holdings and of The 1991 estimates reported here differ slightly from the

mean amounts. The SIPP sample frame contains few estimates reported in the previous P70 report in two

observations for high income households, while the SCF respects:

makes a special attempt to survey respondents who are 1. There were minor changes in the processing sys- likely to have high incomes or be wealthy. For example, tem. the 1993 SIPP estimated total aggregate net worth of

9.6 trillion dollars was 44 percent of the 21.8 trillion 2. The 1991 estimates published here are in 1993

dollars (in 1993 dollars) measured by the 1992 SCF. constant dollars.5

The 1993 measured mean net worth estimated by the

SIPP was $99,772, while the 1992 measured mean net This report presents data for 1993 and compares

worth estimated from the SCF was $226,900 (in 1993 those estimates to 1991 data for certain household

dollars).4 characteristics. The medians of measured net worth by

household income, age of householder, race and eth- In the presence of this pattern of underreporting,

median values are better indicators of the asset accu- nicity, and type of household, are analyzed for 1993 and

mulation of typical households than are mean values. 1991.6 The report also compares the 1993 and 1991

The distribution of measured wealth is skewed, with a data on ownership rates by asset type. Table A presents

historical data on ownership rates, the median value of concentration of households at the low end of the

asset holdings, and the distribution of measured net distribution and a tail of households with high values. In

this case, the median is lower than the mean of the

5

The consumer price index rose 6 percent from the period represented by the 1991 data to the period represented by the 1993 data.

3 Therefore, the 1991 figures are converted to 1993 dollars by multiply- The precursor to the Survey of Consumer Finances was the ing by 1.06. Survey of Financial Characteristics of Consumers conducted by the 6

‘‘Group quarters’’ are excluded from the results shown in this Federal Reserve System in 1963. The Survey of Consumer Finances report. Group quarters are units which consist of unrelated individuals was conducted in 1983, 1986, 1989, and 1992. 4 living together in housing units that have separate rooms but share See The Federal Reserve Bulletin, October 1994, Changes in common facilities such as dining halls. Individuals in group quarters Family Finances From 1989 to 1992: Evidence From the Survey of would not normally share financial resources. The universe also Consumer Finances, Arthur Kennickell and Martha Starr-McCluer. excludes persons in institutions and persons living in military barracks.

2
worth by asset type for 1993, 1991, 1988, and 1984. The collected in the SIPP. Assets covered include intereststandard errors associated with the data in this report earning assets,7 stocks and mutual fund shares, real

are found in tables B–3 through B–9 of appendix B, estate (own home, rental property, vacation homes, and

which also describes statistical tests for comparison of land holdings), own business or profession, mortgages

estimates. held by sellers, and motor vehicles. Liabilities covered

include debts secured by any asset, credit card or store

MEASURED NET WORTH OF HOUSEHOLDS bills, bank loans, and other unsecured debts. The survey

did not cover equities in pension plans, cash surrender

value of life insurance policies, or the value of jewelry

The median measured household net worth as and home furnishings. The distribution of asset ownermeasured in the SIPP in 1993 was $37,587; not statis- ship, the median value of holdings for asset owners, and

tically different from the 1991 median measured net

worth of $38,500 (in 1993 dollars). Measured net worth

is defined as the value of all assets covered in 7

Interest-earning assets include regular savings accounts, money

market deposit accounts, certificates of deposit, interest-earning check- the survey less any debts about which information is ing accounts, money market funds, corporate or municipal bonds, U.S.

Government securities, and other interest-earning assets.

Table A. Ownership Rates, Median Value of Asset Holdings, and the Distribution of Measured Net Worth

by Asset Type: 1993, 1991, 1988, and 1984

[Excludes group quarters]

Asset type

1993 1991

(in 1993 dollars)

1988

(in 1993 dollars)

1984

(in 1993 dollars)

Percent

of

households

that

own

asset

type

Median

values

of holdings for

asset

owners

(dollars)

Distribution

of measured

net

worth

Percent

of Median

house- values Distriholds of hold- bution

that ings for of meaown asset sured

asset owners net

type (dollars) worth

Percent

of Median

house- values Distriholds of hold- bution

that ings for of meaown asset sured

asset owners net

type (dollars) worth

Percent

of Median

house- values Distribuholds of hold- tion of

that ings for meaown asset sured

asset owners net

type (dollars) worth

All assets..........

Interest-earning assets

at financial institutions . .

Savings accounts .....

Money market deposit

accounts ............

Certificates of deposit. .

Interest-earning checking . . . . . . . . . . . . . . . . .

Other interest-earning

assets ................

Money market funds . . .

Government securities .

Corporate or municipal

bonds...............

Other interest-earning

assets ..............

Checking accounts ......

Stocks and mutual fund

shares ................

Own home .............

Rental property .........

Other real estate ........

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

Business or profession. . .

U.S. savings bonds......

IRA or Keogh accounts . .

Other financial investments1 ................

(X)

71.1

60.1

12.6

16.0

36.9

8.6

3.9

2.1

3.1

2.2

45.9

20.9

64.3

8.4

9.3

85.7

10.8

18.5

23.1

5.2

37,587

2,999

(NA)

(NA)

(NA)

(NA)

12,998

(NA)

(NA)

(NA)

(NA)

499

6,960

46,669

29,300

19,415

5,140

7,000

775

12,985

21,001

100.0

11.4

(NA)

(NA)

(NA)

(NA)

4.0

(NA)

(NA)

(NA)

(NA)

0.5

8.3

44.4

6.7

4.6

6.4

6.4

0.8

6.7

3.0

(X)

73.2

62.4

14.9

22.0

37.8

9.0

4.2

2.2

3.4

2.2

46.0

20.7

64.7

9.0

10.7

86.4

11.7

18.1

22.9

2.8

38,500

3,709

(NA)

(NA)

(NA)

(NA)

16,058

(NA)

(NA)

(NA)

(NA)

529

5,490

43,070

31,270

20,140

5,555

10,203

610

11,886

19,031

100.0

14.3

(NA)

(NA)

(NA)

(NA)

5.0

(NA)

(NA)

(NA)

(NA)

0.5

7.1

42.6

6.5

5.4

6.4

7.3

0.6

5.2

3.1

(X)

72.9

61.6

15.2

17.7

34.3

9.4

3.6

2.2

2.8

3.3

48.3

21.8

63.6

9.0

10.5

86.3

12.5

17.5

24.2

6.6

43,617

4,263

(NA)

(NA)

(NA)

(NA)

13,311

(NA)

(NA)

(NA)

(NA)

594

5,502

52,545

45,676

22,038

5,388

12,744

666

11,000

19,769

100.0

14.1

(NA)

(NA)

(NA)

(NA)

4.2

(NA)

(NA)

(NA)

(NA)

0.6

6.5

43.0

7.9

4.3

5.8

8.8

0.6

4.2

3.0

(X)

71.8

62.9

15.7

19.1

24.8

8.5

3.8

1.4

2.6

2.8

53.9

20.0

64.3

9.8

10.0

85.8

12.9

15.0

19.5

7.0

45,411

4,262

(NA)

(NA)

(NA)

(NA)

13,165

(NA)

(NA)

(NA)

(NA)

624

5,410

56,430

48,033

20,559

5,705

8,754

417

6,679

17,777

100.0

14.5

(NA)

(NA)

(NA)

(NA)

3.2

(NA)

(NA)

(NA)

(NA)

0.6

6.8

41.3

9.0

4.4

5.9

10.3

0.5

2.2

5.0

X Not applicable. NA Not available because separate questions were not asked about the amount held in these individual assets.

1

Includes mortgages held from sale of real estate, amount due from sale of business, unit trusts, and other financial investments.

3
the percentage of total measured net worth held in each accounts, money market deposit accounts, certificates

asset for 1993, 1991, 1988, and 1984 are shown in table of deposits, and interest-earning checking accounts)

A. The percentage of total measured net worth held in declined between 1991 and 1993. In both years, savings

each asset in 1993 is shown graphically in figure 1. accounts were the most prevalent interest-earning asset

Home equity constitutes the largest share of mea- held at financial institutions by households, but the

sured net worth. In 1993, home ownership was reported ownership rate of savings accounts dropped from 62

by 64 percent of all households and accounted for 44 percent of households in 1991 to 60 percent in 1993.

percent of total measured net worth, with owners having Other interest-earning assets, such as money market

a median equity of $46,669 in their homes. Median funds and municipal bonds, made up 4 percent of

home equity increased from $43,070 in 1991 to $46,669 measured net worth in 1993, a slight decrease from 5

in 1993. In 1991, 65 percent of all households owned percent in 1991. The median value of holdings in other

homes and home equity accounted for 43 percent of interest-earning assets decreased from $16,058 in 1991

total measured net worth. There was no statistical (in 1993 dollars) to $12,998 in 1993. The ownership

difference between the ownership rates in 1991 and rates of money market funds, government securities,

1993. The percentage of total measured net worth in corporate or municipal bonds, and other interest-earning

home equity also remained unchanged between 1991 assets did not significantly change from 1991 to 1993.

and 1993. The proportion of measured net worth in other real

Interest-earning assets at financial institutions consti- estate declined from 5.4 percent in 1991 to 4.6 percent

tuted the next largest share of measured net worth in in 1993. There was no significant change in the median

both 1993 and 1991. The share of measured net worth value of holdings of other real estate between 1991 and

held in interest-earning assets at financial institutions fell 1993. However, the ownership rate of other real estate

from 14 percent of measured net worth in 1991 to 11 did decline between 1991 and 1993, from 10.7 percent

percent in 1993. Additionally, both the ownership rate to 9.3 percent. The median value of holdings in other

and the median value of interest-earning assets at real estate in 1993 was $19,415.

financial institutions fell between 1991 and 1993. Seventy- Assets held as stocks and mutual fund shares, IRA

one percent of households had interest-earning assets and Keogh accounts, and U.S. savings bonds accounted

at financial institutions compared to 73 percent in 1991. for a larger share of measured net worth in 1993 than in

The median amount of deposits decreased from $3,709 1991. Specifically, the share of measured wealth held as

in 1991 (in 1993 dollars) to $2,999 in 1993. stocks and mutual fund shares increased from 7.1

The ownership rates of all the components of the percent in 1991 to 8.3 percent in 1993. IRA and Keogh

interest-earning assets at financial institutions (savings accounts made up 6.7 percent of measured net worth in

Figure 1.

Distribution of Measured Net Worth by Asset Type: 1993

Own home 44.4%

Rental property 6.7%

Vehicles 6.4%

Other real estate 4.6%

Business 6.4%

IRA/Keogh accounts 6.7%

Other 3.0%

Interest–earning assets at

financial institutions

11.4%

Other interest-earning

assets 4.0%

Checking accounts 0.5%

Stocks and mutual fund shares 8.3%

U.S. savings bonds 0.8%

4
1993, an increase from 5.2 in 1991. The share held as MEASURED NET WORTH BY INCOME

U.S. savings bonds increased slightly from 0.6 to 0.8

percent between 1991 and 1993. The median values of The distributions of measured net worth by income

stocks and mutual funds and of U.S. savings bonds quintile for 1993 and 1991 are shown in table B. Income

increased between 1991 and 1993, while the median is defined as the average monthly income received from

value of IRA and Keogh accounts did not change. There all sources by all members of the household during the

was no significant change in the ownership rates of 4-month period prior to the interview. Households are

categorized by income quintile in 1993 and in 1991. stocks and mutual funds, U.S. savings bonds, or IRA The table shows a systematic relationship between and Keogh accounts between 1991 and 1993. measured net worth and income quintile. Median mea- The proportion of measured net worth held as check- sured net worth in 1993 increased significantly with ing accounts, rental property, vehicles, businesses or income, from $4,249 for households in the lowest quinprofessions, and other financial investments did not tile to $118,996 for households in the highest quintile.

significantly change between 1991 and 1993. However, The distribution of measured net worth was highly

there were significant declines in the ownership rates of skewed; the highest quintile owned 44.1 percent of total

rental property, vehicles, and businesses and profes- measured net worth in 1993, while the lowest quintile

sions between 1991 and 1993. The declines in the owned 7.2 percent. The distribution of measured net

median value of rental property, vehicles, and busi- worth in 1993 by income quintile was not statistically

nesses or professions between 1991 and 1993 were different from the 1991 distribution of measured net

also statistically significant. worth by income quintile.8

Asset ownership patterns and median asset values In 1993, 57.3 percent of households reported unse- also vary by income quintile, as shown in table C. Home cured liabilities, slightly lower than the 59.0 percent of ownership is a good example of this phenomena. In households that reported unsecured liabilities in 1991. 1993, home ownership rate increased significantly with The median value of these liabilities was –$2,210 in income from 42 percent for the lowest income group to 1993, not significantly different from the median value of 86 percent for the highest group. In 1991, the home –$2,290 in 1991. In both years, unsecured liabilities ownership rate was 44 percent for the lowest income represented –3.4 percent of net worth. group and 86 percent for the highest income group. Only

In summary, there was no significant difference between the lowest quintile had a significant decrease in its home

measured net worth from 1991 to 1993. However, there ownership rate between 1991 and 1993.

were declines in the median values of interest-earning In 1993, median home equity increased between the

assets at financial institutions, other interest-earning lowest and the highest income groups. Home equity for

assets, rental property, vehicles, and businesses or

professions. These declines were offset by increases in 8

These figures are biased by significant underreporting by high- the median values of stocks and mutual fund shares, income households. The 1989 Survey of Consumer Finances, which

home equity, and U.S. savings bonds. The median employed a sample designed to capture wealthy households, estivalues of holdings in checking accounts, other real mated that the highest income quintile owned 64.9 percent of total

measured worth in 1989, while the lowest quintile owed 3.4 percent. estate, IRA or Keogh accounts, and other financial The measured worth and income concepts were similar in the two

investments did not change between 1991 and 1993. surveys, but not exactly equivalent.

Table B. Median Measured Net Worth and Distribution of Measured Net Worth by Monthly Household

Income Quintiles: 1993 and 1991

[Number of households in thousands]

Monthly household income quintiles1

1993 1991

(in 1993 dollars)

Number of

households

Median

measured

net worth

(dollars)

Distribution of

measured

net worth

Number of

households

Median

measured

net worth

(dollars)

Distribution of

measured

net worth

Total .................................

Lowest quintile .............................

Second quintile ............................

Third quintile...............................

Fourth quintile .............................

Highest quintile ............................

96,468

19,327

19,306

19,279

19,304

19,251

37,587

4,249

20,230

30,788

50,000

118,996

100.0

7.2

12.2

15.9

20.6

44.1

94,692

18,977

18,912

18,969

18,928

18,905

38,500

5,406

20,315

30,263

51,779

121,423

100.0

7.0

12.2

15.8

20.4

44.6

1

Quintile upper limits for 1993 were: lowest quintile – $1,071; second quintile – $1,963; third quintile – $2,995; fourth quintile – $4,635. Upper

limits for 1991 were: lowest quintile – $1,135; second quintile – $2,027; third quintile – $3,089; fourth quintile – $4,721.

5
the lowest income group in 1994 was $38,940, while that stable between 1991 and 1993. In the highest quintile,

of the highest income group was $66,068 in 1993. between 1991 and 1993, the proportion of households

Median home equity values increased significantly from owning interest-earning assets at financial institutions,

991 for the low- and middle-income quintiles. The sec- other interest-earning assets, and vehicles declined

ond, fourth, and fifth quintiles did not have significant slightly.

changes in the median home equity values between

1991 and 1993. MEASURED NET WORTH BY AGE

Other assets with large differences in ownership rates

between the lowest and highest income groups in 1993 Age is correlated with measured net worth because

were stocks and mutual fund shares (4 to 44 percent), increasing age offers an increasing opportunity to accuIRA or Keogh accounts (5 to 47 percent), and business mulate wealth. Median values of measured net worth by

equity (6 to 19 percent). Within quintiles, the proportion household income quintile and age of the householder

of households owning various assets remained fairly are shown in table D and graphically in figure 2. The

Table C. Percent of Households Owning Assets and Median Value of Holdings by Monthly Household

Income Quintile for Selected Asset Types: 1993 and 1991

[Excludes group quarters]

Monthly household income quintiles1

Interestearning

assets at

financial

institutions2

Other

interestearning

assets3

Stocks and

mutual fund

shares

Equity in

own home

Equity in

motor

vehicles

Equity in

own

business or

profession

IRA or

Keogh

accounts

PERCENT OF HOUSEHOLDS OWNING

ASSETS

1993

Total .............................

Lowest quintile.........................

Second quintile ........................

Third quintile ..........................

Fourth quintile .........................

Highest quintile ........................

1991

Total .............................

Lowest quintile.........................

Second quintile ........................

Third quintile ..........................

Fourth quintile .........................

Highest quintile ........................

MEDIAN VALUE OF HOLDINGS FOR

ASSET OWNERS

1993 (dollars)

Total .............................

Lowest quintile ........................

Second quintile .......................

Third quintile ..........................

Fourth quintile ........................

Highest quintile ........................

1991 (in 1993 dollars)

Total .............................

Lowest quintile ........................

Second quintile .......................

Third quintile ..........................

Fourth quintile ........................

Highest quintile ........................

71.1

42.2

62.9

73.7

84.6

92.2

73.2

43.2

65.8

77.4

86.2

93.4

2,999

1,594

1,999

1,998

2,747

5,999

3,709

2,468

2,624

2,384

3,179

7,738

8.6

2.6

5.1

7.3

9.1

19.1

9.0

2.3

5.1

7.5

8.8

21.3

12,998

9,999

12,999

12,499

9,999

14,999

16,058

6,571

15,900

14,205

15,899

20,140

20.9

4.4

11.6

18.1

26.0

44.3

20.7

5.8

11.5

16.2

25.4

44.8

6,960

3,300

4,916

4,650

5,900

9,992

5,490

4,081

3,988

5,062

3,816

9,010

64.3

41.5

55.9

63.4

74.8

86.0

64.7

43.8

55.7

64.3

74.0

86.0

46,669

38,940

40,973

42,984

41,850

66,068

43,070

36,040

41,340

37,100

41,870

63,494

85.7

58.2

85.1

93.1

95.8

96.4

86.4

58.4

87.0

93.0

96.3

97.4

5,140

1,657

3,348

4,625

6,491

9,898

5,555

1,555

3,533

4,872

6,935

10,017

10.8

6.1

7.5

9.6

11.6

19.4

11.7

6.6

8.7

10.0

12.8

20.5

7,000

946

1,980

4,800

9,500

17,075

10,203

6,360

5,088

4,770

10,176

15,928

23.1

5.4

14.0

20.5

28.3

47.1

22.9

5.1

12.2

19.9

29.4

48.1

12,985

10,000

11,000

9,500

11,800

16,100

11,886

8,372

8,904

10,562

10,388

15,370

1

Quintile upper limits for 1993 were: lowest quintile – $1,071; second quintile – $1,963; third quintile – $2,995; fourth quintile – $4,635. Upper

limits for 1991 were: lowest quintile – $1,135; second quintile – $2,027; third quintile – $3,089; fourth quintile – $4,721. 2

Includes passbook savings accounts, money market deposit accounts, certificates of deposits, and interest-earning checking accounts.

3

Includes money market funds, U.S. Government securities, municipal and corporate bonds, and other interest-earning assets.

6
Table D. Median Measured Net Worth by Age of Householder and Monthly Household Income

Quintile: 1993 and 1991

[Excludes group quarters]

Monthly household income

Total

Less

than 35

years

35 to 44

years

45 to 54

years

55 to 64

years

65 years and over

Total

65 to 69 70 to 74

years years

75 years

and over

1993

All households (thousands) ............

Median measured net worth (dollars). .

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

Measured Net Worth by Income

Quintile1

Lowest quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Second quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Third quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Fourth quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Highest quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

1991 (in 1993 dollars)

All households (thousands) ............

Median measured worth (dollars) .....

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

Measured Net Worth by Income

Quintile1

Lowest quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Second quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Third quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Fourth quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Highest quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

96,468

37,587

9,505

19,327

4,249

949

19,306

20,230

4,999

19,279

30,788

8,283

19,304

50,000

15,088

19,252

118,996

45,392

94,692

38,500

10,858

18,977

5,406

1,059

18,912

20,315

5,934

18,971

30,263

9,204

18,927

51,779

17,135

18,905

121,423

51,702

24,361

5,786

3,297

5,154

478

100

5,201

2,837

1,595

5,659

6,993

4,057

5,096

15,872

7,700

3,251

38,449

17,467

25,031

5,893

3,427

5,256

504

159

5,432

3,087

1,819

5,809

7,080

4,055

5,105

17,023

8,114

3,429

45,509

19,991

22,790

29,202

8,219

2,911

970

499

3,516

4,742

1,975

4,795

17,315

5,325

5,723

40,857

12,305

5,846

91,349

35,200

21,514

33,027

9,938

2,271

1,028

529

3,231

6,518

2,364

4,474

19,398

6,016

5,607

40,834

12,990

5,931

96,450

38,086

16,258

57,755

14,499

1,972

3,875

550

2,272

15,524

3,100

2,847

37,413

7,475

3,686

62,031

16,732

5,480

133,525

51,162

14,934

61,532

16,697

1,901

5,459

735

1,958

20,654

4,783

2,629

37,643

10,083

3,432

60,381

16,423

5,014

142,279

56,180

12,291

91,481

25,108

2,231

16,900

1,900

2,310

57,075

11,805

2,306

86,405

23,099

2,429

122,278

38,800

3,014

210,741

101,389

12,575

88,073

27,221

2,323

17,782

1,272

2,431

56,275

10,945

2,536

80,949

25,330

2,504

129,850

46,019

2,780

206,226

98,289

20,768

86,324

20,642

7,059

30,400

2,993

6,006

80,975

20,624

3,672

138,554

53,870

2,370

199,581

93,196

1,660

354,781

215,335

20,638

94,074

27,400

7,226

33,523

3,710

5,860

95,718

30,711

3,523

154,732

72,663

2,279

219,043

118,719

1,751

454,599

317,893

6,132

92,500

23,650

1,560

34,413

2,499

1,692

72,587

16,742

1,244

116,589

44,410

934

182,861

85,633

702

316,751

184,760

6,435

107,473

35,270

1,657

31,800

2,649

1,760

97,492

26,543

1,306

150,831

68,052

968

190,059

86,229

744

362,124

235,365

5,504

95,748

23,054

1,600

24,373

2,142

1,674

83,848

20,691

1,076

147,230

53,675

682

173,664

83,755

472

351,739

213,863

5,439

97,863

27,285

1,630

33,230

3,101

1,526

94,392

27,216

1,141

143,694

66,081

657

205,958

110,187

485

423,627

316,580

9,131

77,654

18,125

3,899

32,149

3,499

2,641

84,633

22,883

1,352

156,499

67,049

754

232,105

106,650

486

475,498

273,500

8,764

80,636

24,380

3,939

33,601

4,823

2,574

94,139

36,226

1,075

166,689

85,490

654

294,203

195,746

522

525,312

420,986

1

Quintile upper limits for 1993 were: lowest quintile – $1,071; second quintile – $1,963; third quintile – $2,995; fourth quintile – $4,635. Quintile

upper limits for 1991 were: lowest quintile – $1,135; second quintile – $2,027; third quintile – $3,089; fourth quintile – $4,721.significantly from

7
older

results show the expected relationship between age and

measured net worth. Median measured net worth increased

significantly from $5,786 for the youngest households to

$91,481 for households with householders in the 55-to64-year-old category and then declined to $77,654 for

the oldest group (75 years and over).9 Median measured

net worth fell significantly from 1991 to 1993 for households in 35-to-44-year-old and the 65-to-69-year-old

categories.

Median measured net worth excluding home equity is

considered an important indicator of well-being for some

subgroups of the population, such as the elderly, who

tend to have larger proportions of measured net worth in

their homes than do younger people. Median measured

net worth excluding home equity increased with age for

all age groups under 65 and declined for households

with householders age 65 and over. Among households

with householders age 65 and over, households with

householders age 75 and over had the lowest measured

net worth. In 1993, the median measured net worth of

households with householders age 75 years and older

was $18,125 compared with the median measured net

9

Cross-sectional evidence of the life-cycle relationship between

measured worth and age, however, does not imply the same behavior

for an individual over a lifetime. Such evidence is based on average

measured worth holdings for different age cohorts at a point in time. If

the cohorts have different lifetime measured worth profiles, it is possible

to observe cross-sectional evidence of a life-cycle relationship between

measured worth and age when, in fact, measured worth increases over

the lifetime of each cohort.

8

worth of $23,642 for all households with a householder

age 65 or older. (There was no significant difference in

median measured net worth excluding home equity

between households with householders age 65 to 69

and those age 70 to 74.)

Median measured net worth excluding home equity

fell from $10,858 in 1991 (in 1993 dollars) to $9,505 in

1993. During the period 1991 to 1993, median measured net worth excluding home equity fell for all householder age categories, except for householders less

than 35 years of age, those 55-to-64-years of age, and

those 70-to-74-years of age.

The distribution of measured net worth by age for

1991 and 1993 is shown in table E. In both years, home

equity was the major asset holding for all age groups. It

is evident that the composition of measured net worth

differs by the age of the householder. The share of

measured net worth held as equity in motor vehicles

declined with increasing age for both years, from 18

percent of measured net worth for the youngest group to

4 percent for the 65 or older group in 1993. The share of

measured net worth held as assets in businesses or

professions also declined in both years for householders

age 55 or more.

The share of measured net worth from some asset

types, however, increased between the youngest and

oldest groups. For example, the proportion of measured

net worth in interest-earning assets at financial institutions increased significantly from 11 percent of measured net worth for the youngest group to 17 percent for

households with householders 65 or older in 1993. In

1991, the proportion of measured net worth in interestearning assets at financial institutions varied from 12

percent for households with householders less than 35

years of age to 21 percent for households with householders 65 years of age or more. Between 1991 and

1993, the proportion of measured net worth in interestearning assets at financial institutions declined for households headed by householders 35 years old and older.

MEASURED NET WORTH BY RACE AND

HISPANIC ORIGIN

Measured net worth holdings also differed by race

and ethnicity of the householder.10 Table F shows

median measured net worth by race and Hispanic origin.

There were large differences in wealth holdings between

White households and other groups. In 1993, White

households had a median measured net worth of $45,740,

while the figure for Black households was $4,418.

Hispanic households had median holdings of $4,656.

(The median measured net worth of Black households

and those of Hispanic origin were not significantly

different.)

10Information on the Hispanic population shown in this report was

collected in the 50 States and the District of Columbia and, therefore,

does not include residents of Puerto Rico.

Figure 2.

Median Measured Net Worth by

Age of Householder: 1993

Under 35 35 to 44 45 to 54 55 to 64 65 to 69 70 to 74 75 and

$5,786

$29,202

$57,755

$91,481 $92,500 $95,748

$77,654
Table E. Distribution of Measured Net Worth by Age of Householder and Asset Type:

[Excludes group quarters]

1993 and 1991

Asset type

1993 1991

Total

Less

than 35

years

35 to

44

years

45 to

54

years

55 to

64

years

65

years

and

over Total

Less

than 35

years

35 to

44

years

45 to

54

years

55 to

64

years

65

years

and

over

Total measured net

worth ..............

Interest-earning assets at

financial institutions ......

Other interest-earning

assets ..................

Checking accounts ........

Stocks and mutual fund

shares ..................

Own home ...............

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

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

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

Business or profession.....

U.S. savings bonds........

IRA or Keogh accounts ....

Other financial investments1

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

Unsecured liabilities2 ......

100.0

11.4

4.0

0.5

8.3

44.4

6.7

4.6

6.4

6.4

0.8

6.7

3.0

–3.4

100.0

10.9

2.1

1.2

8.9

43.8

5.3

5.1

18.2

10.6

1.0

3.9

3.6

–14.5

100.0

7.9

2.5

0.7

6.4

47.7

6.4

5.0

8.8

9.5

1.2

6.3

2.9

–5.3

100.0

7.7

2.6

0.5

8.1

45.3

7.2

5.5

6.5

9.0

0.7

7.4

2.6

–3.3

100.0

9.6

4.1

0.4

8.8

42.4

9.1

4.9

4.9

6.1

0.7

8.8

3.0

–2.8

100.0

16.7

6.1

0.4

9.1

43.6

5.2

3.6

3.7

2.4

0.8

5.7

3.2

–0.6

100.0

14.3

5.0

0.5

7.1

42.1

6.5

5.4

6.4

7.3

0.6

5.2

3.0

–3.4

100.0

12.3

1.9

1.2

4.7

42.1

6.0

6.2

18.1

13.5

0.7

3.2

3.5

–13.6

100.0

9.6

3.0

0.7

5.9

45.3

7.7

5.4

8.8

11.6

0.5

5.7

1.7

–5.8

100.0

9.5

3.7

0.4

5.4

41.0

9.1

6.8

6.4

10.8

0.5

5.8

4.1

–3.7

100.0

12.2

5.1

0.4

6.7

41.2

6.6

6.3

5.2

6.8

0.7

7.1

4.3

–2.6

100.0

21.1

7.3

0.4

9.4

41.6

4.4

4.0

3.5

2.1

0.6

3.8

2.4

–0.5

1

Includes mortgages held from sale of real estate, amount due from sale of business, unit trusts, and other financial investments.

2

Since net worth is the value of assets less liabilities, unsecured liabilities are subtracted from the distribution of net worth and are shown as

negative.

Table F. Median Measured Net Worth by Race and Hispanic Origin of Householder and Monthly

Household Income Quintile: 1993 and 1991

[Excludes group quarters]

Monthly household income quintile

Total White Black Hispanic origin1

1993

1991

(in 1993

dollars) 1993

1991

(in 1993

dollars) 1993

1991

(in 1993

dollars)

1991

(in 1993

1993 dollars)

All households (thousands) ............

Median measured net worth (dollars)....

Measured Net Worth by Income

Quintile2

Lowest quintile:

Households (thousands) .............

Median measured net worth (dollars). .

Second quintile:

Households (thousands) .............

Median measured net worth (dollars). .

Third quintile:

Households (thousands) .............

Median measured net worth (dollars). .

Fourth quintile:

Households (thousands) .............

Median measured net worth (dollars). .

Highest quintile:

Households (thousands) .............

Median measured net worth (dollars). .

96,468

37,587

19,327

4,249

19,306

20,230

19,279

30,788

19,304

50,000

19,252

118,996

94,692

38,500

18,977

5,406

18,912

20,315

18,969

30,263

18,928

51,779

18,905

121,423

82,190

45,740

14,662

7,605

16,162

27,057

16,591

36,341

17,218

54,040

17,558

123,350

81,409

47,075

14,480

10,743

16,006

26,665

16,388

35,510

17,043

55,950

17,492

128,298

11,248

4,418

4,066

250

2,663

3,406

2,126

8,480

1,454

20,745

937

45,023

10,768

4,844

4,041

0

2,436

3,446

2,124

8,302

1,353

21,852

814

56,922

7,403

4,656

2,272

499

1,760

2,900

1,437

6,313

1,115

20,100

819

55,923

6,407

5,557

1,835

529

1,557

3,214

1,312

7,501

1,009

20,564

694

72,168

1

Persons of Hispanic origin may be of any race.

2

Quintile upper limits for 1993 were: lowest quintile – $1,071; second quintile – $1,963; third quintile – $2,995; fourth quintile – $4,635. Upper

limits for 1991 were: lowest quintile – $1,135; second quintile – $2,027; third quintile – $3,089; fourth quintile – $4,721.

9
Table F also shows median measured net worth by measured net worth of Hispanic households was not

income quintile, race, and Hispanic origin. White house- significantly different from that of Black households in

holds in every income quintile had significantly higher every income quintile in both 1991 and 1993, except for

levels of median measured net worth than Black house- the first income quintile in 1991.

holds in the same income quintile in 1993 and in 1991.

In the lowest quintile in 1993, the median measured net

worth for White households was $7,605 while that of MEASURED NET WORTH BY TYPE OF

Black households in this quintile was significantly lower HOUSEHOLD

($250). In the highest quintile in 1993, the median

measured net worth for White households was $123,350, The measured net worth of married-couple, femalesignificantly higher than the median for Black house- and male-maintained households by age of the households in the highest quintile ($45,023). holder for 1991 and 1993 is shown in table G. MarriedThe median measured net worth of each racial group couple households were the largest category of housedid not change between 1991 and 1993, except for holds and, overall, had the largest median measured net

White householders and Black householders in the worth in both years ($61,905 in 1993 and $63,599 in

lowest income quintile. The median measured net worth 1991). Households headed by married couples age 65

of White households in the first income quintile declined and over experienced a statistically significant decline in

from $10,743 (in 1993 dollars) in 1991 to $7,605 in 1993. their median measured net worth, from $142,517 (in

The measured net worth of Black householders in the 1993 dollars) in 1991 to $129,790 in 1993. However,

lowest income quintile increased from $0 in 1991 to there was no change between 1991 and 1993 in the

$250 in 1993.11 Other apparent differences in the esti- median measured net worth of all married-couple housemates of measured net worth over time for the other holds.

race and ethnicity categories were not statistically sig- Households headed by females experienced a decline nificant. in their median measured net worth, from $15,518 (in The median measured net worth of Hispanic house- 1993 dollars) in 1991 to $13,294 in 1993. This decline holds was lower than that of White households in every was concentrated among female householders age 35 income quintile in both 1991 and 1993. The median to 54 as this was the only age group of female-headed

householders that showed a statistically significant decline 11The 1991 estimate of measured net worth for Black households in in median net worth between 1991 and 1993. The

the first income quintile median is the result of half (or more) of Black median net worth of male-headed households was

households in the lowest quintile having measured net worth that is

either negative or essentially zero; some Black households in this lowest $13,500 in 1993, not significantly different from the 1991

income quintile have positive measured net worth. estimate of $12,698 (in 1993 dollars). There was no

Table G. Median Measured Net Worth by Type of Household and Age of Householder: 1993 and 1991

[Excludes group quarters]

1993 1991

Median measured net worth Median measured net worth

Type of household by age of householder

Number of

(dollars)

Number of

(in 1993 dollars)

Excluding Excluding

households equity in households equity in

(thousands) Total own home (thousands) Total own home

Married-couple households .................. 52,891 61,905 17,051 52,616 63,599 19,557

Less than 35 years ....................... 12,141 12,941 5,677 12,247 12,702 5,548

35 to 54 years ........................... 23,983 61,874 17,436 23,080 64,047 19,801

55 to 64 years ........................... 7,568 127,752 43,543 7,849 123,138 47,158

65 years and over ........................ 9,199 129,790 44,410 9,040 142,517 59,200

Male householders ......................... 15,397 13,500 5,157 15,297 12,698 5,963

Less than 35 years ....................... 5,285 4,300 2,890 5,746 5,027 3,668

35 to 54 years ........................... 6,157 18,426 6,156 5,409 18,391 7,420

55 to 64 years ........................... 1,437 44,670 10,905 1,514 32,330 5,988

65 years and over ........................ 2,518 60,741 12,927 2,627 69,157 17,489

Female householders ....................... 28,180 13,294 3,363 27,179 15,518 3,762

Less than 35 years ....................... 6,935 1,342 790 7,038 1,383 953

35 to 54 years ........................... 8,908 8,405 2,652 7,959 11,294 3,308

55 to 64 years ........................... 3,286 44,762 6,475 3,211 41,635 6,229

65 years and over ........................ 9,050 57,679 9,560 8,972 62,746 13,015

10
statistically significant difference between male-maintained measured net worth in 1993 was that of female houseand female-maintained household median measured holders under 35 years of age ($1,342).

net worth in 1993, though they were significantly different in 1991. Both male- and female-maintained house- USER COMMENTS holds had median measured net worth approximately

one-fifth that of married-couple households in 1993.

When measured net worth levels are compared within We are interested in your reaction to the usefulness

and content of this report. We welcome your recommen- age groups, households maintained by women less than dations. If you have any suggestions or comments, 55 years of age had a lower median measured net worth please send them to: than their male-maintained counterparts in 1993. There

was no statistically significant difference between the Dr. Daniel H. Weinberg

median measured net worth of households maintained Chief, Housing and Household Economic

by females age 55 to 64 and males age 55 to 64 in 1993. Statistics Division

However, in 1991, there was a significant difference. U.S. Bureau of the Census

Overall, the age and household group with the lowest Washington, DC 20233-8500

11
Appendix A.

Definitions and Explanations

Population coverage. The estimates in this report are indicated that their origin was Mexican, Puerto Rican,

restricted to the civilian, noninstitutional population of Cuban, Central or South American, or some other

the United States and members of the Armed Forces Hispanic origin. It should be noted that persons of

living off post or with their families on post. The esti- Hispanic origin may be of any race.

mates exclude group quarters.

Monthly income. The monthly income estimates shown

Householder. Survey procedures call for listing first the in this report for households are based on the sum of the

person (or one of the persons) in whose name the home monthly income received by each member of the houseis owned or rented as of the interview date. If the house hold age 15 years old or over at the date of interview.

is owned jointly by a married couple, either the husband The figures represent the average monthly amounts

or the wife may be listed first, thereby becoming the received by households during the appropriate 4-month

reference person, or householder, to whom the relation- reference period for each rotation group. To calculate

ship of the other household members is recorded. One the monthly income figures, the composition of the

person in each household is designated as the ‘‘house- household was fixed at the date of the interview and the

holder.’’ The number of householders, therefore, is total cash income of household members 15 years and

equal to the number of households. older for the 4-month reference period was divided by

four. The cash income concept used in this report

Household. A household consists of all persons who includes the sum of all income received from any of the

occupy a housing unit. A house, an apartment or other sources listed under Income Sources Included in Monthly

group of rooms, or a single room is regarded as a Cash Income. Rebates, refunds, loans, and capital gain

housing unit when it is occupied or intended for occu- or loss amounts from the sale of assets, and interhousepancy as separate living quarters; that is, when the hold transfers of cash such as allowances are not

occupants do not live and eat with any other persons in included. Accrued interest on individual retirement accounts

the structure and there is either (1) direct access from (IRA’s), Keogh retirement plans, and U.S. savings bonds

the outside or through a common hall or (2) a kitchen or are also excluded. This definition differs somewhat from

cooking equipment for the exclusive use of the occu- that used in the annual income reports based on the

pants. For this report, the household composition was March CPS income supplement questionnaire. The data

determined as of the interview date. A household includes in those reports, published in the Consumer Income

the related family members and all the unrelated per- Series, P60, are based only on income received in a

sons, if any, such as lodgers, foster children, wards, or regular or periodic manner and, therefore, exclude lumpemployees who share the housing unit. A person living sum or one-time payments, such as inheritances, or

alone in a housing unit or a group of unrelated persons insurance settlements. The March CPS income definisharing a housing unit as partners is also counted as a tion also excludes those same income sources excluded

household. The count of households excludes group by SIPP. The income amounts represent amounts actuquarters. Examples of group quarters include rooming ally received during the 4-month reference period, before

and boarding houses, college dormitories, and convents deductions for income and payroll taxes, union dues,

and monasteries. Part B medicare premiums, etc.

Race. The population is divided into three groups on the Measured net worth. The household measured net

basis of race: White, Black, and ‘‘other races.’’ The last worth estimates shown in this report are based on the

category includes American Indians, Asian/Pacific Island- sum of the market value of assets owned by every

ers, and any other race except White and Black. Per- member of the household minus liabilities (secured or

sons of Hispanic origin were determined on the basis of unsecured) owed by household members. The estia question that asked for self-identification of the person’s mates represent the net worth of households as of the

origin or descent. Respondents were asked to select end of the appropriate reference period. The measured

their origin (or the origin of some other household net worth concept is based on the value of all assets

member) from a ‘‘flash card’’ listing ethnic origins. minus all liabilities listed under Assets and Liabilities

Persons of Hispanic origin, in particular, were those who Included in Net Worth. The major assets not covered in

A–1
this report are equities in pension plans, cash value of Federal civil service or other Federal civilian employee

life insurance policies, and value of homefurnishings pension

and jewelry. These items were not covered because it is U.S. military retirement

particularly difficult to obtain reliable estimates of the National Guard or Reserve Forces retirement

value of these assets in a household survey. State government pensions

Local government pensions

Median net worth. The median net worth is the amount Income from paid-up life insurance policies or which divides the net worth distribution into two equal annuities

groups, one having household net worth less than that Estates and trusts

amount and the other having net worth above that Other payments for retirement, disability or survivors, amount. and G.I. Bill/VEAP education benefits

Income assistance from a charitable group

INCOME SOURCES INCLUDED IN MONTHLY Other unemployment compensation (e.g., Trade

CASH INCOME Adjustment Act benefits, strike pay, other)

Veterans’ compensation or pensions

Earnings From Employment Money from relatives or friends

Wages and salary Lump sum payments

Nonfarm self-employment income Income from roomers or boarders

Farm self-employment income National Guard or Reserve pay

Incidental or casual earnings Income From Assets (Property Income) Other cash income not included elsewhere

Regular/passbook savings accounts in a bank,

savings and loan, or credit union

Money market deposit accounts ASSETS AND LIABILITIES INCLUDED IN NET

Certificates of deposit WORTH

NOW, Super NOW, or other interest-earning checking

accounts Assets Money market funds Interest-earning assets held at financial institutions U.S. Government securities Passbook savings account Municipal or corporate bonds Money market deposit accounts Other interest-earning assets Certificates of deposit Stocks or mutual fund shares Interest-earning checking accounts Rental property Other interest-earning assets Mortgages Money market funds Royalties U.S. Government securities Other financial investments Municipal or corporate bonds

Other Income Sources Other interest-earning assets

Social security Stocks and mutual fund shares

U.S. Government railroad retirement Rental property

Federal supplemental security Mortgages held for sale of real estate

State administered supplemental security income Amount due from sale of businesses or property

State unemployment compensation Regular checking accounts

Supplemental unemployment benefits U.S. savings bonds

Black lung payments Home ownership

Workers’ compensation Vacation homes and other real estate

State temporary sickness or disability benefits IRA and Keogh accounts

Employer or union temporary sickness policy Motor vehicles

Payments from a sickness, accident, or disability Other financial assets

insurance policy purchased by individual Liabilities Aid to Families with Dependent Children (AFDC),

(ADC) General assistance or general relief Secured liabilities

Indian, Cuban, or refugee assistance Margin and broker accounts

Foster child care payments Mortgages on own home

Other welfare Mortgages on rental property

Child support payments Mortgages on other homes or real estate

Alimony payments Debt on businesses or professions

Pensions from a company or union Vehicle loans

A–2
Unsecured liabilities Loans from financial institutions

Credit card and store bills Educational loans

Doctor, dentist, hospital, and nursing home bills Other unsecured liabilities

Loans from individuals

A–3
Appendix B.

Source and Accuracy of the Estimates

SOURCE OF DATA Occupants of about 93 percent of all eligible living

quarters participated in the first interview of the panel.

The SIPP universe is the noninstitutionalized resident For later interviews, field representatives interviewed

only original sample persons (those in wave 1 sample population living in the United States. This population households and interviewed in wave 1) and persons includes persons living in group quarters, such as living with them. The Census Bureau automatically dormitories, rooming houses, and religious group dwell- designated all first wave noninterviewed households as ings. Crew members of merchant vessels, Armed Forces noninterviews for all subsequent interviews. personnel living in military barracks, and institutionalized

persons, such as correctional facility inmates and nurs- For the 1990 panel, field representatives conducted

ing home residents are not eligible to be in the survey. personal interviews in the first through sixth wave. For

Also, U.S. citizens residing abroad are not eligible to be the 1991 panel, field representatives conducted perin the survey. Foreign visitors who work or attend school sonal interviews in the first through third wave. For the

in this country and their families are eligible; all others 1992 panel, field representatives conducted personal

are not eligible. With the exceptions noted above, field interviews in the first and second wave. The remaining

representatives interview eligible persons who are at interviews for both panels were designated telephone

least 15 years of age at the time of the interview. interviews. Even though headquarters designated an

interview as personal or telephone, the field represen- The 1990 and 1991 panel SIPP samples are located tative may have conducted either type of interview in 230 Primary Sampling Units (PSU’s) and the 1992 depending on the circumstances of a case. SIPP sample is located in 284 PSU’s, each consisting of For personal interviews, we followed original sample a county or a group of contiguous counties. Within these persons if they moved to a new address, unless the new PSU’s, we systematically selected expected clusters of address was more than 100 miles from a SIPP sample two living quarters (LQ’s) from lists of addresses pre- area. If the original sample persons moved farther than pared for the 1980 decennial census to form the bulk of 100 miles from a SIPP sample area, we attempted the sample. To account for LQ’s built within each of the telephone interviews. When original sample persons sample areas after the 1980 census, we selected a moved to remote parts of the country and were unreach- sample containing clusters of four LQ’s from permits able by telephone, moved without leaving a forwarding issued for construction of residential LQ’s up until shortly address, or refused the interview, additional noninter- before the beginning of the panel. views resulted.

In jurisdictions that have incomplete addresses or As a part of most waves, we cover subjects that are don’t issue building permits, we sampled small land important to meet SIPP goals and don’t require repeated areas, listed expected clusters of four LQ’s, and then measurement during the panel. The data on these subsampled. In addition, we selected a sample of LQ’s subjects are of particular interest to data users and from a supplemental frame that included LQ’s identified policymakers. We cover these subjects once during the as missed in the 1980 census. panel or annually. By collecting data once for the panel

The 1990 panel differs from other panels as a result of or annually, we reduce respondent burden. We call a

oversampling for low income households. The panel specific set of questions on a subject a topical module.

contains an oversample of Black-headed households, For this report, the topical modules analyzed include

Hispanic-headed households, and female-headed fam- questions on assets and liabilities. We implemented

ily households with no spouse present and living with them in wave 4 of the 1990 panel, wave 7 of the 1991

relatives. panel, and wave 4 of the 1992 panel.

The first interview occurred during February, March, Since wave 7 of the 1991 panel and wave 4 of the

April, or May of the panel year. Interviews for approxi- 1992 panel are concurrent and contain the same relmately one-fourth of the sample took place in each of evant topical modules on 1992 assets and liabilities, we

these months. For the remainder of the panel, interviews combined the data and analyzed it as a single data set.

for each person occurred every 4 months. At each The primary motivation for combining this data is to

interview, the reference period was the 4 months pre- obtain an increase in sample size and reduce effects of

ceding the interview month. nonresponse over the life of the panel.

B–1
Noninterviews. Tabulations in this report were drawn

from interviews conducted from February through May

of 1991 and February through May of 1993. Table B–1

summarizes information on nonresponse for the interview months in which we collected the data used to

produce this report.

Table B–1. Household Sample Size by Month and

Interview Status

Month

Eligible

Interviewed

Noninterviewed

Nonresponse

rate

(percent)1

February 1991 ............

March 1991 ..............

April 1991 ................

May 1991 ................

February 1993 ............

March 1993 ..............

April 1993 ................

May 1993 ................

5300

5400

5200

5200

9500

9200

9500

9300

4400

4500

4300

4300

8000

7900

8200

8000

900

900

900

900

1500

1400

1400

1300

16

16

17

17

16

15

15

14

1

Because of rounding of all numbers to the nearest 100, there are

some inconsistencies. We calculated the percentage using unrounded

numbers.

Some respondents do not respond to some of the

questions. Therefore, the overall nonresponse rate for

some items, such as income and money related items is

higher than the nonresponse rates in table B-1. For

more discussion of nonresponse see the Quality Profile

for the Survey of Income and Program Participation,

May 1990, by T. Jabine, K. King, and R. Petroni,

available from Customer Services, Data Users Services

Division, of the U.S. Census Bureau (301-457-4100).

WEIGHTING PROCEDURE

We derived SIPP person weights in each panel from

several stages of weight adjustments. In the first wave,

we gave each person a base weight equal to the inverse

of his/her probability of selection. For each subsequent

interview, the Census Bureau gave each person a base

weight that accounted for following movers.

We applied a factor to each interviewed person’s

weight to account for the SIPP sample areas not having

the same population distribution as the strata they are

from.

We applied a noninterview adjustment factor to the

weight of every occupant of interviewed households to

account for persons in noninterviewed occupied households which were eligible for the sample. (The Census

Bureau treated individual nonresponse within partially

interviewed households with imputation. We made no

special adjustment for noninterviews in group quarters.)

The Census Bureau used complex techniques to

adjust the weights for nonresponse. For a further explanation of the techniques used, see the Nonresponse

Adjustment Methods for Demographic Surveys at the

U.S. Bureau of the Census, November 1988, Working

paper 8823, by R. Singh and R. Petroni. The success of

these techniques in avoiding bias is unknown. An example

of successfully avoiding bias is in Current Nonresponse

Research for the Survey of Income and Participation

(paper by Petroni, presented at the Second International

Workshop on Household Survey Nonresponse, October

1991).

We performed an additional stage of adjustment to

persons’ weights to reduce the mean square errors of

the survey estimates. We accomplished this by ratio

adjusting the sample estimates to agree with monthly

Current Population Survey (CPS) type estimates of the

civilian (and some military) noninstitutional population of

the United States by demographic characteristics including age, sex, and race as of the specified date. For the

1990 panel, the Census Bureau brought CPS estimates

by age, sex, and race into agreement with adjusted

estimates from the 1980 decennial census. Adjustments

to the 1980 decennial census estimates reflect births,

deaths, immigration, emigration, and changes in the

Armed Forces since 1980. For the 1991 panel and the

1992 panel, the Census Bureau brought CPS estimates

by age, sex, and race into agreement with adjusted

estimates from the 1990 decennial census. Adjustments

to the 1990 decennial census estimates include an

adjustment for undercount1 and also reflect births, deaths,

immigration, emigration, and changes in the Armed

Forces since 1990. In addition, we controlled SIPP

estimates to independent Hispanic controls and made

an adjustment to assign equal weights to husbands and

wives within the same household. We implemented all of

the above adjustments for each reference month and

the interview month.

ACCURACY OF ESTIMATES

We base SIPP estimates on a sample. The sample

estimates may differ somewhat from the values obtained

from administering a complete census using the same

questionnaire, instructions, and enumerators. The difference occurs because with an estimate based on a

sample survey two types of errors are possible: nonsampling and sampling. We can provide estimates of the

magnitude of the SIPP sampling error, but this is not true

of nonsampling error. The next few sections describe

SIPP nonsampling error sources, followed by a discussion of sampling error, its estimation, and its use in data

analysis.

1

See ‘‘The 1990 Post-Enumeration Survey: Operations and Results’’

by Howard Hogan in the 1993 Proceedings of the Undercount in the

1990 Census Section, American Statistical Association.

B–2
Nonsampling variability. We attribute nonsampling

errors to many sources, they include:

x Inability to obtain information about all cases in the

sample

x Definitional difficulties

x Differences in the interpretation of questions

x Inability or unwillingness on the part of the respondents to provide correct information

x Inability to recall information

x Errors made in collection (e.g., recording or coding

the data)

x Errors made in processing the data

x Errors made in estimating values for missing data

x Biases resulting from the differing recall periods caused

by the interviewing pattern used

x Undercoverage

We used quality control and edit procedures to reduce

errors made by respondents, coders, and interviewers.

More detailed discussions of the existence and control

of nonsampling errors in the SIPP are in the SIPP

Quality Profile.

Undercoverage in SIPP resulted from missed living

quarters and missed persons within sample households.

It is known that undercoverage varies with age, race,

and sex. Generally, undercoverage is larger for males

than for females and larger for Blacks than for nonBlacks. Ratio estimation to independent age-race-sex

population controls partially corrects for the bias due to

survey undercoverage. However, biases exist in the

estimates when persons in missed households or missed

persons in interviewed households have characteristics

different from those of interviewed persons in the same

age-race-sex group.

A common measure of survey coverage is the coverage ratio: the estimated population before ratio adjustment divided by the independent population control.

Table B–2 shows CPS coverage ratios for age-sex-race

groups for 1992. The CPS coverage ratios can exhibit

some variability from month to month, but these are a

typical set of coverage ratios. Other Census Bureau

household surveys like the SIPP experience similar

coverage.

Comparability with other estimates. Exercise caution when comparing data from this report with data

from other SIPP publications or with data from other

surveys. Comparability problems are from varying seasonal patterns for many characteristics, different nonsampling errors, and different concepts and procedures.

Refer to the SIPP Quality Profile for known differences

with data from other sources and further discussion.

Table B–2. 1992 CPS Coverage Ratios

Age

Non-Black Black All persons

Male Female Male Female Male Female Total

0-14. . .

15 . . . .

16 . . . .

17 . . . .

18 . . . .

19 . . . .

20-24 .

25-26 .

27-29 .

30-34 .

35-39 .

40-44 .

45-49 .

50-54 .

55-59 .

60-62 .

63-64 .

65-67 .

68-69 .

70-74 .

75-99 .

15+ . . .

0+ . . . .

0.963

0.962

0.969

0.981

0.939

0.860

0.913

0.927

0.910

0.893

0.910

0.929

0.956

0.940

0.944

0.965

0.905

0.935

0.925

0.926

0.977

0.928

0.936

0.965

0.949

0.936

0.975

0.926

0.872

0.927

0.940

0.954

0.948

0.949

0.951

0.966

0.961

0.941

0.956

0.907

0.979

0.942

0.993

0.989

0.953

0.955

0.927

0.899

0.923

0.945

0.883

0.754

0.734

0.688

0.707

0.691

0.763

0.824

0.903

0.807

0.826

0.792

0.669

0.783

0.789

0.856

0.764

0.782

0.827

0.926

0.919

0.907

0.862

0.846

0.801

0.832

0.877

0.864

0.883

0.899

0.906

0.956

0.877

0.825

0.850

0.872

0.875

0.831

1.014

0.912

0.883

0.895

0.957

0.952

0.962

0.975

0.930

0.844

0.889

0.897

0.885

0.870

0.895

0.919

0.951

0.927

0.932

0.948

0.884

0.921

0.913

0.920

0.961

0.912

0.923

0.959

0.944

0.932

0.957

0.913

0.861

0.913

0.931

0.941

0.939

0.942

0.946

0.965

0.951

0.928

0.944

0.903

0.969

0.931

0.995

0.983

0.944

0.947

0.958

0.948

0.947

0.966

0.922

0.853

0.901

0.914

0.914

0.905

0.919

0.933

0.958

0.940

0.930

0.946

0.894

0.947

0.923

0.962

0.975

0.929

0.935

Sampling variability. Standard errors indicate the magnitude of the sampling error. They also partially measure

the effect of some nonsampling errors in response and

enumeration, but do not measure any systematic biases

in the data. The standard errors primarily measure the

variations that occurred by chance because we surveyed a sample rather than the entire population.

USE OF STANDARD ERRORS

The standard errors are in tables B–3 through B–9 of

this report.

Confidence intervals. The sample estimate and its

standard error enable one to construct confidence intervals, ranges that would include the average result of all

possible samples with a known probability. For example,

if we selected all possible samples and surveyed each of

these under essentially the same conditions and with the

same sample design, and if we calculated an estimate

and its standard error from each sample, then:

1. Approximately 90 percent of the intervals from 1.6

standard errors below the estimate to 1.6 standard

errors above the estimate would include the average result of all possible samples

2. Approximately 95 percent of the intervals from two

standard errors below the estimate to two standard

errors above the estimate would include the average result of all possible samples

B–3
The average estimate derived from all possible samples Note concerning small estimates and small differis or is not contained in any particular computed interval. ences. We show summary measures in the report only

However, for a particular sample, one can say with a when the base is 200,000 or greater. Because of the

specified confidence that the confidence interval includes large standard errors involved, there is little chance that

the average estimate derived from all possible samples. estimates will reveal useful information when computed

on a base smaller than 200,000. Also, nonsampling

Hypothesis testing. One may also use standard errors error in one or more of the small number of cases

for hypothesis testing. Hypothesis testing is a procedure providing the estimate can cause large relative error in

for distinguishing between population characteristics that particular estimate. We show estimated numbers,

using sample estimates. The most common type of however, even though the relative standard errors of

hypothesis tested is (1) the population characteristics these numbers are larger than those for the correspondare identical versus (2) they are different. One can ing percentages. We provide smaller estimates primarily

perform tests at various levels of significance, where a to permit such combinations of the categories as serve

level of significance is the probability of concluding that each user’s needs. Therefore, be careful in the interprethe characteristics are different when, in fact, they are tation of small differences since even a small amount of

identical. nonsampling error can cause a borderline difference to

Unless noted otherwise, all statements of comparison appear significant or not, thus distorting a seemingly

in the report passed a hypothesis test at the 0.10 level of valid hypothesis test.

significance or better. This means that, for differences Standard error of a difference. The standard error of cited in the report, the estimated absolute difference a difference between two sample estimates, x and y, is between parameters is greater than 1.6 times the stan- approximately equal to dard error of the difference.

To perform the most common test, compute the s 2 2

~x2y! 5 =sx 1 sy – 2rs s

difference XA – XB, where XA and XB are sample x y

estimates of the characteristics of interest. A later sec- where sx and sy are the standard errors of the estimates

tion explains how to derive an estimate of the standard x and y, and r is the correlation coefficient between the

error of the difference XA – XB. Let that standard error be characteristics estimated by x and y. The estimates can

sDIFF. If XA – XB is between –1.6 times sDIFF and +1.6 be numbers, averages, percentages, ratios, etc. Undertimes sDIFF, no conclusion about the characteristics is estimates or overestimates of standard error of differjustified at the 10 percent significance level. If, on the ences result if the estimated correlation coefficient is

other hand, XA – XB is smaller than –1.6 times sDIFF or overestimated or underestimated, respectively. In this

larger than +1.6 times sDIFF, the observed difference is report, we assume r is 0.

significant at the 10 percent level. In this event, it is Illustration. SIPP estimates show that in 1991 the commonly accepted practice to say that the character- percentages of households owning assets was 73.2 and istics are different. Of course, sometimes this conclusion in 1993 the percentage of households owning assets will be wrong. When the characteristics are, in fact, the was 71.1. The standard errors for these estimates are same, there is a 10 percent chance of concluding that given in table B–3. They are 0.4 and 0.3, respectively. they are different. Assuming that these two estimates are not correlated, Note that as we perform more tests, more erroneous the standard error of the estimated difference of 2.1 significant differences will occur. For example, at the 10 percent is percent significance level, if we perform 100 independent hypothesis tests in which there are no real differ- s 5 =~0.4 2

! 1 ~0.3 2! 5 0.5 ences, it is likely that about 10 erroneous differences will ~x–y!

occur. Therefore, interpret the significance of any single The 90 percent confidence interval for the difference is

test cautiously. from 1.3 percent to 2.9 percent.

B–4
Table B–3. Standard Errors of Ownership Rates, Median Value of Asset Holdings, and the Distribution of

Measured Net Worth by Asset Type: 1993, 1991, 1988, and 1984

[Excludes group quarters]

Asset type

1993 1991

(in 1993 dollars)

1988

(in 1993 dollars)

1984

(in 1993 dollars)

Percent

of

households

that

own

asset

type

Median

values

of holdings for

asset

owners

(dollars)

Distribution

of measured

net

worth

Percent

of Median

house- values Distriholds of hold- bution

that ings for of meaown asset sured

asset owners net

type (dollars) worth

Percent

of Median

house- values Distriholds of hold- bution

that ings for of meaown asset sured

asset owners net

type (dollars) worth

Percent

of Median

house- values Distribuholds of hold- tion of

that ings for meaown asset sured

asset owners net

type (dollars) worth

All assets..........

Interest-earning assets

at financial institutions . .

Savings accounts .....

Money market deposit

accounts ............

Certificates of deposit. .

Interest-earning checking . . . . . . . . . . . . . . . . .

Other interest-earning

assets ................

Money market funds . . .

Government securities .

Corporate or municipal

bonds...............

Other interest-earning

assets ..............

Checking accounts ......

Stocks and mutual fund

shares ................

Own home .............

Rental property .........

Other real estate ........

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

Business or profession. . .

U.S. savings bonds......

IRA or Keogh accounts . .

Other financial investments1 ................

(X)

0.31

0.33

0.22

0.25

0.33

0.19

0.13

0.10

0.12

0.10

0.34

0.27

0.32

0.19

0.20

0.24

0.21

0.26

0.29

0.15

762

1

(NA)

(NA)

(NA)

(NA)

1,000

(NA)

(NA)

(NA)

(NA)

–

338

703

600

–

49

998

4

399

1,493

2.00

0.32

(NA)

(NA)

(NA)

(NA)

0.23

(NA)

(NA)

(NA)

(NA)

0.02

0.47

0.81

0.37

0.21

0.11

0.59

0.07

0.22

0.21

(X)

0.35

0.39

0.28

0.33

0.39

0.23

0.16

0.12

0.14

0.12

0.40

0.32

0.38

0.23

0.25

0.27

0.26

0.31

0.34

0.13

846

107

(NA)

(NA)

(NA)

(NA)

981

(NA)

(NA)

(NA)

(NA)

–

445

1,060

901

572

37

331

27

556

1,409

2.20

0.44

(NA)

(NA)

(NA)

(NA)

0.34

(NA)

(NA)

(NA)

(NA)

0.02

0.39

0.90

0.37

0.29

0.13

0.49

0.04

0.19

0.17

(X)

0.37

0.40

0.30

0.32

0.39

0.24

0.15

0.12

0.14

0.15

0.41

0.34

0.40

0.24

0.25

0.28

0.27

0.31

0.35

0.21

950

122

(NA)

(NA)

(NA)

(NA)

706

(NA)

(NA)

(NA)

(NA)

12

282

571

2,601

894

66

479

46

310

1,466

2.80

0.47

(NA)

(NA)

(NA)

(NA)

0.31

(NA)

(NA)

(NA)

(NA)

0.02

0.66

1.06

0.60

0.25

0.13

0.73

0.04

0.18

0.42

(X)

0.40

0.43

0.32

0.35

0.38

0.25

0.17

0.10

0.14

0.15

0.44

0.35

0.42

0.26

0.26

0.31

0.30

0.32

0.35

0.23

949

128

(NA)

(NA)

(NA)

(NA)

1,213

(NA)

(NA)

(NA)

(NA)

13

292

613

2,460

1,629

70

1,426

22

153

1,637

3.50

0.56

(NA)

(NA)

(NA)

(NA)

0.27

(NA)

(NA)

(NA)

(NA)

0.03

0.76

1.17

0.59

0.30

0.16

0.99

0.06

0.13

1.04

– Represents zero. X Not applicable. NA Not available because separate questions were not asked about the amount held in these

individual assets.

1

Includes mortgages held from sale of real estate, amount due from sale of business, unit trusts, and other financial investments.

Table B–4. Standard Errors for the Median Measured Net Worth and Distribution of Measured Net Worth by

Monthly Household Income Quintiles: 1993 and 1991

[Number of households in thousands]

Monthly household income qunitiles1

1993 1991

(in 1993 dollars)

Number of

households

Median

measured

net worth

(dollars)

Distribution of

measured

net worth

Number of

households

Median

measured

net worth

(dollars)

Distribution of

measured

net worth

Total .................................

Lowest quintile .............................

Second quintile ............................

Third quintile...............................

Fourth quintile .............................

Highest quintile ............................

51

258

258

258

258

258

762

426

1,214

1,236

1,305

2,723

2.0

0.3

0.4

0.5

0.6

1.4

41

303

302

303

302

302

846

651

1,766

1,405

2,436

4,645

2.2

0.3

0.5

0.6

0.7

1.6

1

Quintile upper limits for 1993 were: lowest quintile – $1,071; second quintile – $1,963; third quintile – $2,995; fourth quintile – $4,635. Upper

limits for 1991 were: lowest quintile – $1,135; second quintile – $2,027; third quintile – $3,089; fourth quintile – $4,721.

B–5
Table B–5. Standard Errors for Percent of Households Owning Assets and Median Value of Holdings by

Monthly Household Income Quintile for Selected Asset Types: 1993 and 1991

[Excludes group quarters]

Monthly household income quintiles1

Interestearning

assets at

financial

institutions2

Other

interestearning

assets3

Stocks and

mutual fund

shares

Equity in

own home

Equity in

motor

vehicles

Equity in

own

business or

profession

IRA or

Keogh

accounts

PERCENT OF HOUSEHOLDS OWNING

ASSETS

1993

Total .............................

Lowest quintile.........................

Second quintile ........................

Third quintile ..........................

Fourth quintile .........................

Highest quintile ........................

1991

Total .............................

Lowest quintile.........................

Second quintile ........................

Third quintile ..........................

Fourth quintile .........................

Highest quintile ........................

MEDIAN VALUE OF HOLDINGS FOR

ASSET OWNERS

1993

Total .............................

Lowest quintile.........................

Second quintile ........................

Third quintile ..........................

Fourth quintile .........................

Highest quintile ........................

1991 (in 1993 dollars)

Total ..............................

Lowest quintile.........................

Second quintile ........................

Third quintile ..........................

Fourth quintile .........................

Highest quintile ........................

0.3

0.7

0.7

0.7

0.5

0.4

0.4

0.9

0.8

0.7

0.6

0.4

1

125

3

85

200

126

107

264

181

188

159

305

0.2

0.2

0.3

0.4

0.4

0.6

0.2

0.3

0.4

0.5

0.5

0.7

1,000

2,250

2,251

2,150

825

500

981

2,506

3,020

2,041

3,126

1,060

0.3

0.3

0.5

0.6

0.7

0.8

0.3

0.4

0.6

0.7

0.8

0.9

338

–

396

571

434

479

445

610

537

424

390

795

0.3

0.7

0.8

0.7

0.7

0.5

0.4

0.9

0.9

0.9

0.8

0.6

703

1,460

1,674

1,197

1,161

1,526

1,060

742

742

1,643

371

583

0.2

0.7

0.5

0.4

0.3

0.3

0.3

0.9

0.6

0.5

0.3

0.3

49

223

–

147

104

151

37

17

–

129

140

186

0.2

0.4

0.4

0.4

0.5

0.6

0.3

0.4

0.5

0.5

0.6

0.7

998

453

550

800

1,000

2,563

331

1,855

2,279

1,671

1,590

3,631

0.3

0.3

0.5

0.6

0.7

0.8

0.3

0.4

0.6

0.7

0.8

0.9

399

1,343

799

600

500

510

556

1,559

1,276

196

437

553

– Represents zero.

1

Quintile upper limits for 1993 were: lowest quintile – $1,071; second quintile – $1,963; third quintile – $2,995; fourth quintile – $4,635. Upper

limits for 1991 were: lowest quintile – $1,135; second quintile – $2,027; third quintile – $3,089; fourth quintile – $4,721. 2

Includes passbook savings accounts, money market deposit accounts, certificates of deposits, and interest-earning checking accounts.

3

Includes money market funds, U.S. Government securities, municipal and corporate bonds, and other interest-earning assets.

B–6
Table B–6. Standard Errors for the Median Measured Net Worth by Age of Householder and Monthly

Household Income Quintile: 1993 and 1991

[Excludes group quarters]

Monthly household income

Total

Less

than 35

years

35 to 44

years

45 to 54

years

55 to 64

years

65 years and over

Total

65 to 69 70 to 74

years years

75 years

and over

1993

All households (thousands) ............

Median measured net worth (dollars)....

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

Measured Net Worth by Income

Quintiles1

Lowest quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Second quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Third quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Fourth quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Highest quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

1991 (in 1993 dollars)

All households (thousands) ............

Median measured net worth (dollars)....

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

Measured Net Worth by Income

Quintiles1

Lowest quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Second quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Third quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Fourth quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

Highest quintile:

Households (thousands) .............

Median measured net worth (dollars). .

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

51

762

189

258

426

86

258

1,214

175

258

1,236

356

258

1,305

492

258

2,723

1,365

41

897

289

256

652

46

256

1,766

363

256

1,405

359

256

2,436

747

256

4,646

1,936

279

289

109

146

64

85

147

263

136

153

400

251

146

861

436

118

2,586

1,497

281

341

143

148

93

182

150

194

262

155

585

292

146

1,166

814

121

3,724

1,612

273

1,023

319

111

245

75

122

469

275

141

1,530

401

154

1,855

784

155

4,640

1,318

268

1,234

411

99

434

30

117

1,093

444

137

2,222

538

152

1,921

803

156

3,896

1,869

242

1,772

562

92

1,175

209

99

3,267

475

110

2,758

656

125

3,316

1,602

151

4,383

2,503

234

2,634

776

91

1,421

212

92

2,519

734

106

2,296

1,144

121

3,617

888

144

6,129

3,098

216

2,278

1,788

98

3,048

550

100

3,111

1,315

100

4,232

3,338

102

7,491

3,135

113

7,420

8,230

218

3,547

1,470

100

3,540

293

102

3,933

1,886

104

6,966

2,690

104

7,180

5,883

109

16,887

7,286

265

2,193

741

169

1,991

321

157

2,159

1,092

125

6,537

3,285

101

11,400

6,864

85

27,805

17,586

264

1,727

1,287

171

2,090

458

155

2,047

1,981

122

6,289

3,579

99

13,551

12,452

87

32,486

32,179

159

3,673

2,350

82

5,210

675

86

3,582

1,579

74

10,041

3,763

64

19,149

11,277

55

39,524

29,645

162

4,062

3,008

85

3,788

410

87

5,033

4,291

75

8,878

4,346

65

23,930

11,036

57

47,670

20,779

151

4,267

1,726

83

3,428

376

85

4,250

2,442

68

12,359

5,320

55

13,056

13,447

46

33,108

38,201

150

3,624

2,036

84

6,398

573

81

6,639

1,463

70

12,985

11,824

54

19,578

15,125

46

43,858

48,180

190

2,750

1,310

128

2,576

475

106

3,742

2,100

77

13,386

9,035

57

12,537

15,176

46

62,835

69,377

187

3,559

1,823

129

3,049

530

105

4,058

3,975

68

14,979

8,385

54

28,619

13,586

48

40,338

33,895

1

Quintile upper limits for 1993 were: lowest quintile – $1,071; second quintile – $1,963; third quintile – $2,995; fourth quintile – $4,635. Quintile

upper limits for 1991 were: lowest quintile – $1,135; second quintile – $2,027; third quintile – $3,089; fourth quintile – $4,721.

B–7
Table B–7. Standard Errors for Distribution of Measured Net Worth by Age of Householder and Asset

Type: 1993 and 1991

[Excludes group quarters]

Asset type

1993 1991

Total

Less

than 35

years

35 to

44

years

45 to

54

years

55 to

64

years

65

years

and

over Total

Less

than 35

years

35 to

44

years

45 to

54

years

55 to

64

years

65

years

and

over

Total measured net

worth ..............

Interest-earning assets at

financial institutions ......

Other interest-earning

assets ..................

Checking accounts ........

Stocks and mutual fund

shares ..................

Own home ...............

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

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

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

Business or profession.....

U.S. savings bonds........

IRA or Keogh accounts ....

Other financial investments1

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

Unsecured liabilities2 ......

2.0

0.3

0.2

–

0.5

0.8

0.4

0.2

0.1

0.6

0.1

0.2

0.2

–0.1

5.3

0.8

0.5

0.1

1.4

2.3

0.8

0.4

0.7

1.3

0.1

0.3

1.1

–0.7

4.8

0.6

0.1

–

0.6

2.0

0.7

0.2

0.3

2.3

0.3

0.4

0.6

–0.3

4.8

0.5

0.4

–

1.7

1.9

0.7

0.2

0.3

1.5

0.1

0.5

0.3

–0.2

4.1

0.6

0.4

–

0.8

1.6

1.1

0.3

0.2

0.7

0.1

0.5

0.4

–0.4

3.1

0.7

0.5

–

0.6

1.2

0.5

0.5

0.1

0.6

0.2

0.4

0.3

–0.1

2.2

0.4

0.3

–

0.4

0.9

0.4

0.3

0.1

0.5

–

0.2

0.2

–0.1

6.4

0.9

0.4

0.1

0.8

2.8

1.3

0.3

0.9

1.7

0.1

0.3

1.4

–0.8

4.7

0.6

0.5

0.1

0.8

2.0

0.8

0.3

0.3

1.4

–

0.5

0.2

–0.4

5.3

0.1

0.5

–

1.9

2.0

1.1

0.4

0.3

1.4

0.1

0.4

1.1

–0.4

5.2

0.9

0.9

–

1.9

1.9

0.7

0.5

0.3

1.1

0.1

0.5

0.9

–0.4

3.6

0.9

0.6

1.4

1.4

0.5

0.7

0.1

0.3

0.1

0.3

0.3

–

– Represents zero.

1

Includes mortgages held from sale of real estate, amount due from sale of business, unit trusts, and other financial investments.

2

Since net worth is the value of assets less liabilities, unsecured liabilities are subtracted from the distribution of net worth and are sh

negative.

own as

–

Table B–8. Standard Errors for the Median Measured Net Worth by Race and Hispanic Origin of

Householder and Monthly Household Income Quintile: 1993 and 1991

[Excludes group quarters]

Monthly household income quintile

Total White Black Hispanic origin1

1993

1991

(in 1993

dollars) 1993

1991

(in 1993

dollars) 1993

1991

(in 1993

dollars)

1991

(in 1993

1993 dollars)

Median measured net worth (dollars)....

Measured Net Worth by Income

Quintile2

Lowest quintile:

Median measured net worth (dollars). .

Second quintile:

Median measured net worth (dollars). .

Third quintile:

Median measured net worth (dollars). .

Fourth quintile:

Median measured net worth (dollars). .

Highest quintile:

Median measured net worth (dollars). .

762

426

1,214

1,236

1,305

2,723

846

652

1,766

1,405

2,436

4,645

797

781

1,413

1,900

1,500

3,111

1,178

1,330

2,127

1,579

2,068

5,108

425

158

446

1,110

1,754

6,405

442

32

348

782

2,237

4,035

415

53

563

1,168

2,919

10,129

623

–

481

817

4,348

15,446

– Represents zero.

1

Persons of Hispanic origin may be of any race.

2

Quintile upper limits for 1993 were: lowest quintile –

limits for 1991 were: lowest quintile – $1,135; second quintile – $2,027; third quintile

$1,071; second quintile – $1,963; third

– $3,089;

quintile – $2,

fourth quintile – $4,721.

995; fourth quintile – $4,635. Upper

B–8
Table B–9. Standard Errors for the Median Measured Net Worth by Type of Household and Age of

Householder: 1993 and 1991

[Excludes group quarters]

Type of household by age of householder

1993 median measured net worth

(dollars)

1991 median measured net worth

(in 1993 dollars)

Excluding equity

Total in own home

Excluding equity

Total in own home

Married-couple households ..............................

Less than 35 years ...................................

35 to 54 years .......................................

55 to 64 years .......................................

65 years and over ....................................

Male householders .....................................

Less than 35 years ...................................

35 to 54 years .......................................

55 to 64 years .......................................

65 years and over ....................................

Female householders ...................................

Less than 35 years ...................................

35 to 54 years .......................................

55 to 64 years .......................................

65 years and over ....................................

984

602

1,230

4,075

3,253

999

351

1,811

7,380

4,779

678

207

777

3,213

2,350

446

288

519

2,046

1,960

228

300

514

1,425

1,757

116

155

188

736

810

1,314

730

1,656

7,312

4,202

1,114

552

2,597

4,426

8,436

918

235

1,206

3,302

3,473

502

297

603

3,583

4,412

329

262

623

1,590

3,208

240

145

212

984

1,321

B–9