Discussing aggregate and microlevel processes in separate chapters implies a separation that is highly artificial. In reality, the processes that underlie wealth accumulation and distribution are interconnected in complex ways. I separate them to parse out the relative strength and direction of influences and to make the discussion more manageable. In this chapter, I explore several individual and family-level behaviors and processes that influence wealth accumulation, processes to which I alluded in previous chapters. My focus is primarily empirical, but the findings I present in this chapter are an integral part of the theoretical model that has guided my discussion throughout the book. My basic assumption is that changes in aggregate processes, such as the distribution of wealth, reflect changes in numerous, interacting aggregate processes and microprocesses. Aggregate processes are the structure within which individual and family-level behaviors occur. While there are aggregate processes that affect wealth accumulation, there are also individual and family processes that directly affect accumulation. These microlevel behaviors and processes determine which families accumulate wealth and thus determine a great deal about how wealth is distributed. They are my focus here.

Specifically, I explore the effects of age and life-cycle patterns, race, family structure, income, and education on wealth accumulation. The role that these behaviors and processes play in the accumulation and distribution of wealth has received a considerable amount of research attention, at least in part because of their policy implications.