Although wealth inequality fell sharply in Belgium during the last century, this fall has stalled during the past 20 years. The figures come from a research paper written by a PhD student at Ghent University (UGent) that forms the basis of an article in Tuesday’s edition of the financial daily ‘De Tijd’. Currently, the richest 1% in our society possess the same amount of wealth and the poorest 75%.
New study reveals that wealth inequality has remained the same during the past 20 years
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It is not always easy to comment accurately about wealth levels or wealth distribution in Belgium as many figures are based on estimates or questionnaires. Those that take part in questionnaires often underestimate their own wealth and the very rich are often reluctant to take part. In Belgium there is no wealth asset register.
The UGent researcher Arthur Apostel decided to take a different approach. He examined inheritance tax declarations since 1935. He was also able to calculate the impact of “gifts” that are given to get around benefactors having to pay inheritance tax.
Wealth inequality no longer falling
Arthur Apostel’s figures show that for just over 20 years wealth inequality has not significant fallen nor risen. The conclusion contradicts previous studies, including one by the National Bank of Belgium that suggested that wealth inequality was still falling. During the 20th century this was clearly the case. In the 1930s the richest 1% possessed 40% of all private wealth in Belgium. By the end of the 20th century this had fallen to 20%.
However, since the start of the new millennium this trend has not continued. In 2022 the richest 1% in Belgium had 22% of total private wealth and the top 10% possessed 56%.
Wealth inequality in Brussels is higher that the average for Belgium as a whole, while in Wallonia it is lower. The figures for Flanders are more or less in line with those for the whole of Belgium.
Men have on average more wealth than women, particular among the older age demographic. Man are over-represented both among the richest and the poorest groups, while women are mainly the present in the groups in between.
No better than in other countries
Arthur Apostel’s paper does not venture into far-reaching international comparisons. However, he does suggest, however, that you can roughly say that the level of inequality in Belgium is comparable to that in countries like France, the Netherlands, Sweden, Spain or Italy.
A KU Leuven study on income inequality published 6 months ago also took income from assets (such as shares, property, etc.) in to account. The study contradicted the assertion made in previous research that wealth inequality in Belgium was not as great as in neighbouring countries.