Family Business and the 1%. Issue 6 (July 2018)

• Record Type: Journal Article
• Authors: Carney, Michael; Nason, Robert S.
• Other Names: Bapuji Hari guest-editor.; Husted Bryan W. guest-editor.; Lu Jane guest-editor.; Mir Raza guest-editor.
• Is Part Of: Business and society. Volume 57:Issue 6(2018)
• Page Start: 1191
• Page End: 1215
• Publication Date: 2018-07
• Subjects: corporate governance -- family business -- wealth inequality; Industries -- Social aspects -- Periodicals; Industrial sociology -- Periodicals; Business ethics -- Periodicals; 306.3
• DOI: 10.1177/0007650316661165
• Languages: English
• ISSNs: 0007-6503

Abstract

Growing concern about economic inequality has generated a polarized narrative regarding the causes and consequences of extreme wealth. We contend that divided ideological positions obscure a more mundane reality about the typical wealthiest 1% households. Using data from the triennial survey of consumer finance, we demonstrate that there is substantial heterogeneity within the 1%. Contrary to public discourse, the typical 1% household does not have wealth reflective of popular rich lists, but derives a significant share of its wealth from ownership and active management of small- to medium-sized private enterprise. We use these findings to shed new insights on business families' relationship to economic inequality and open promising new areas of inquiry regarding the role of the family business in society.