@techreport{BaselgiaMartinez2024,
  type = {Working {{Paper}}},
  title = {Using Rich Lists to Study the Super-Rich and Top Wealth Inequality: Insights from {{Switzerland}}},
  author = {Baselgia, Enea and Mart{\'i}nez, Isabel Z.},
  year = {2024},
  month = mar,
  number = {10993},
  institution = {CESifo},
  url = {https://doi.org/10.2139/ssrn.4756075},
  abstract = {We present a new data set we built based on Swiss rich lists going back to 1989. We show, among other things, that 60\% of the super-rich are heirs---a fraction twice as large as in the US---and that wealth mobility at the very top has declined significantly. We find that top 0.01\% wealth shares are higher than previous estimates based on wealth tax statistics suggest. At the same time, we argue that rich list data lead to overestimating wealth inequality. While rich lists are valuable to study the super-rich, we recommend to use reported wealth figures with caution.},
  keywords = {Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality}
}

We present a new data set we built based on Swiss rich lists going back to 1989. We show, among other things, that 60% of the super-rich are heirs—a fraction twice as large as in the US—and that wealth mobility at the very top has declined significantly. We find that top 0.01% wealth shares are higher than previous estimates based on wealth tax statistics suggest. At the same time, we argue that rich list data lead to overestimating wealth inequality. While rich lists are valuable to study the super-rich, we recommend to use reported wealth figures with caution.

@article{GreggKanabar2023,
  title = {Intergenerational Wealth Transmission in {{Great Britain}}},
  author = {Gregg, Paul and Kanabar, Ricky},
  year = {2023},
  month = dec,
  journal = {Review of Income and Wealth},
  volume = {69},
  number = {4},
  pages = {807--837},
  doi = {10.1111/roiw.12620},
  url = {https://doi.org/10.1111/roiw.12620},
  abstract = {We document the intergenerational wealth transmission between adult offspring and their parent's using the Wealth and Assets Survey for Great Britain. We estimate an intergenerational wealth elasticity of 0.4 and Rank-Rank elasticity of 0.3 and find intergenerational wealth transmission for individuals in their 60s is lower than for those currently aged in their 30s and early 40s, though rank based estimates are stable. Our estimation results imply that the intergenerational wealth elasticity is 3.8 percentage points higher when comparing people with those the same age 6 years previously suggesting strong evidence of higher intergenerational wealth persistence in younger age cohorts. Taken together, the findings have important implications for future wealth inequalities and must be addressed.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

We document the intergenerational wealth transmission between adult offspring and their parent's using the Wealth and Assets Survey for Great Britain. We estimate an intergenerational wealth elasticity of 0.4 and Rank-Rank elasticity of 0.3 and find intergenerational wealth transmission for individuals in their 60s is lower than for those currently aged in their 30s and early 40s, though rank based estimates are stable. Our estimation results imply that the intergenerational wealth elasticity is 3.8 percentage points higher when comparing people with those the same age 6 years previously suggesting strong evidence of higher intergenerational wealth persistence in younger age cohorts. Taken together, the findings have important implications for future wealth inequalities and must be addressed.

@unpublished{Haneretal2023,
  title = {Marry into New or Old Money? The Distributional Impact of Marital Decisions from an Intergenerational Perspective},
  author = {H{\"a}ner, Melanie and Salvi, Michele and Schaltegger, Christoph A.},
  year = {2023},
  month = nov,
  doi = {10.2139/ssrn.4657421},
  url = {https://doi.org/10.2139/ssrn.4657421},
  abstract = {This paper examines the distributional consequences of marital decisions on family wealth and potential future inheritances. We use a large administrative dataset from Switzerland that contains detailed wealth information and enables us to identify spouses and their parents. We find that marital sorting is particularly pronounced at the tails of the wealth distribution. However, the financial similarity of couples' parents is much smaller. The distributional effect on parental wealth is only half the size. We identify intergenerational social mobility as the mechanism behind this attenuation over generations. Consequently, chances of marrying an affluent spouse depend substantially more on one's own wealth than on potential future inheritances.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth},
  note = {Unpublished manuscript}
}

This paper examines the distributional consequences of marital decisions on family wealth and potential future inheritances. We use a large administrative dataset from Switzerland that contains detailed wealth information and enables us to identify spouses and their parents. We find that marital sorting is particularly pronounced at the tails of the wealth distribution. However, the financial similarity of couples' parents is much smaller. The distributional effect on parental wealth is only half the size. We identify intergenerational social mobility as the mechanism behind this attenuation over generations. Consequently, chances of marrying an affluent spouse depend substantially more on one's own wealth than on potential future inheritances.

@article{NekoeiSeim2023,
  title = {How Do Inheritances Shape Wealth Inequality? Theory and Evidence from {{Sweden}}},
  author = {Nekoei, Arash and Seim, David},
  year = {2023},
  journal = {The Review of Economic Studies},
  volume = {90},
  number = {1},
  pages = {463--498},
  doi = {10.1093/restud/rdac016},
  url = {https://doi.org/10.1093/restud/rdac016},
  abstract = {This article aims to measure and understand the role of inheritances in shaping wealth inequality. We use a quasi-experimental design and Swedish administrative data to document that the average heir depletes her inheritance within a decade while the inheritances of wealthy heirs remain intact. These different depletion rates are not due to different consumption or labour supply responses but due to different rates of return on inherited wealth. Upon their receipt, inheritances reduce relative measures of wealth inequality, such as top shares or percentile ratios. Theoretically, this reduction in inequality could be due to either a compressed inheritance distribution or similar chances of having wealthy parents (high intergenerational mobility). Empirically, the first force is more significant in Sweden. Within a decade, however, the effect is reversed: inheritances increase wealth inequality since the different depletion rates widen the inequality in inherited wealth over time. This implies that inheritance taxation can reduce long run wealth inequality only through the taxation of wealthy heirs.},
  keywords = {Intergenerational Wealth}
}

This article aims to measure and understand the role of inheritances in shaping wealth inequality. We use a quasi-experimental design and Swedish administrative data to document that the average heir depletes her inheritance within a decade while the inheritances of wealthy heirs remain intact. These different depletion rates are not due to different consumption or labour supply responses but due to different rates of return on inherited wealth. Upon their receipt, inheritances reduce relative measures of wealth inequality, such as top shares or percentile ratios. Theoretically, this reduction in inequality could be due to either a compressed inheritance distribution or similar chances of having wealthy parents (high intergenerational mobility). Empirically, the first force is more significant in Sweden. Within a decade, however, the effect is reversed: inheritances increase wealth inequality since the different depletion rates widen the inequality in inherited wealth over time. This implies that inheritance taxation can reduce long run wealth inequality only through the taxation of wealthy heirs.

@article{TischIschinsky2023,
  title = {Top Wealth and Its Historical Origins: Identifying Entrenched Fortunes by Linking Rich Lists over 100 Years},
  author = {Tisch, Daria and Ischinsky, Emma},
  year = {2023},
  month = sep,
  journal = {Socius},
  volume = {9},
  doi = {10.1177/23780231231192774},
  url = {https://doi.org/10.1177/23780231231192774},
  abstract = {The authors examine the historical origins of Germany's 1,032 largest fortunes. The innovation of this research is to link a rich list from 2019 with rich lists from 1913 and genealogical data provided in Wikidata. The authors find a remarkable historical continuity of large fortunes despite two world wars, the Great Depression, regime changes, and different currency reforms. One third of the companies associated with today's largest fortunes were founded before World War I. About 8 percent of today's fortunes can be traced back to fortunes on rich lists from 1913. Regression analyses show that these entrenched fortunes rank on average higher on the rich list than fortunes of younger origin. Network analyses indicate that some of today's largest fortunes are intertwined through marital lines, hinting at social closure at the top. These findings indicate that the accumulation and perpetuation of fortunes over many generations is an important feature of top wealth in Germany.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality}
}

The authors examine the historical origins of Germany's 1,032 largest fortunes. The innovation of this research is to link a rich list from 2019 with rich lists from 1913 and genealogical data provided in Wikidata. The authors find a remarkable historical continuity of large fortunes despite two world wars, the Great Depression, regime changes, and different currency reforms. One third of the companies associated with today's largest fortunes were founded before World War I. About 8 percent of today's fortunes can be traced back to fortunes on rich lists from 1913. Regression analyses show that these entrenched fortunes rank on average higher on the rich list than fortunes of younger origin. Network analyses indicate that some of today's largest fortunes are intertwined through marital lines, hinting at social closure at the top. These findings indicate that the accumulation and perpetuation of fortunes over many generations is an important feature of top wealth in Germany.

@article{Beckert2022,
  title = {Durable Wealth: Institutions, Mechanisms, and Practices of Wealth Perpetuation},
  author = {Beckert, Jens},
  year = {2022},
  month = feb,
  journal = {Annual Review of Sociology},
  volume = {48},
  number = {1},
  doi = {10.1146/annurev-soc-030320-115024},
  url = {https://doi.org/10.1146/annurev-soc-030320-115024},
  abstract = {Research indicates that positions of very high private wealth can often be maintained by families over many generations. This article puts front and center the institutions, mechanisms and practices through which families at the very top of the wealth distribution protect and enlarge their wealth. Opportunity hoarding is based on legal institutions, most importantly inheritance law, trust law, advantageous financial regulations and estate tax policies. Wealthy owners also pay for a growing number of legal and financial experts whose task it is to protect their fortunes. The stipulations of legal institutions are shaped through lobbying, campaign donations and the influencing of public opinion, facilitating the intergenerational preservation of large fortunes. Philanthropy appears to be not primarily a means of supporting general welfare, but rather a further instrument of wealth protection of the super-rich through their role in legitimizing large fortunes and the reaping of tax benefits. The entrenched character of large fortunes opens up questions regarding the normative identity of contemporary societies.},
  keywords = {Intergenerational Wealth}
}

Research indicates that positions of very high private wealth can often be maintained by families over many generations. This article puts front and center the institutions, mechanisms and practices through which families at the very top of the wealth distribution protect and enlarge their wealth. Opportunity hoarding is based on legal institutions, most importantly inheritance law, trust law, advantageous financial regulations and estate tax policies. Wealthy owners also pay for a growing number of legal and financial experts whose task it is to protect their fortunes. The stipulations of legal institutions are shaped through lobbying, campaign donations and the influencing of public opinion, facilitating the intergenerational preservation of large fortunes. Philanthropy appears to be not primarily a means of supporting general welfare, but rather a further instrument of wealth protection of the super-rich through their role in legitimizing large fortunes and the reaping of tax benefits. The entrenched character of large fortunes opens up questions regarding the normative identity of contemporary societies.

@unpublished{Blacketal2022,
  title = {Gender and Inheritances},
  author = {Black, Sandra E. and Devereux, Paul J. and Landaud, Fanny and Salvanes, Kjell G.},
  year = {2022},
  month = jan,
  url = {https://www.sandraeblack.com/research/},
  urldate = {2022-02-23},
  abstract = {Using administrative data from Norway, we document that gifts and inheritances are a more important component of total income for women than for men. This is particularly the case at the very top of the distribution of total lifetime income and at the top of the net wealth distribution. We find that the gender difference in the ratio of gifts and inheritances to total income received over a 19-year period is not due to gender differences in the receipt of intergenerational transfers but is driven by gender differences in total income. We conclude by comparing gender differences in the distribution of total lifetime income to counterfactual measures where gifts and inheritances are equalized across all individuals and show that gifts and inheritances tend to reduce gender gaps across the distribution.},
  keywords = {Intergenerational Wealth},
  note = {Unpublished manuscript}
}

Using administrative data from Norway, we document that gifts and inheritances are a more important component of total income for women than for men. This is particularly the case at the very top of the distribution of total lifetime income and at the top of the net wealth distribution. We find that the gender difference in the ratio of gifts and inheritances to total income received over a 19-year period is not due to gender differences in the receipt of intergenerational transfers but is driven by gender differences in total income. We conclude by comparing gender differences in the distribution of total lifetime income to counterfactual measures where gifts and inheritances are equalized across all individuals and show that gifts and inheritances tend to reduce gender gaps across the distribution.

@article{CohenRavivLewin-Epstein2022,
  title = {Homeownership Regimes and Class Inequality among Young Adults},
  author = {Cohen Raviv, Or and {Lewin-Epstein}, Noah},
  year = {2022},
  month = feb,
  journal = {International Journal of Comparative Sociology},
  doi = {10.1177/00207152211070817},
  url = {https://doi.org/10.1177/00207152211070817},
  abstract = {In this study, we merge the literature on homeownership regimes, which focuses to a lesser extent on the consequences of wealth and social inequality, with the literature on wealth and social stratification, which overlooks the importance of homeownership regimes in contributing to those inequalities. Within this framework, we examine to what extent homeownership regimes shape class inequality in homeownership among young adults and the mortgage debt burden that usually accompanies it. We first develop an updated typology of homeownership regimes that incorporates the role of the family via intergenerational wealth transfers (IWT) such as gifts and housing assets. This dimension was theoretically underdeveloped and empirically absent from previous homeownership typologies. Second, we employ this typology to investigate class-based gaps in homeownership and mortgage debt burden within and between homeownership regimes. This is done by pooling data for a total of 20 countries from two sources: the European Union Statistics on Income and Living Conditions (EU-SILC) 2013--2014 (EuroStat) for EU countries, and the Household Expenditure Survey 2012--2013 (CBS) for Israel. Using multivariate modeling, we find that homeownership regimes in which IWT in the form of financial support is common practice increase class inequality in homeownership compared to regimes in which IWT of assets is common practice. Contrary to the literature suggesting that liberal mortgage markets advance inclusion, it appears that in the homeownership regime characterized by the most liberal housing finance system (which includes Northern European countries and the Netherlands), class inequality in mortgaged homeownership is the widest but class inequality in mortgage debt burden is the narrowest. Homeownership regimes characterized by IWT of assets (which include Southern and Central Eastern European countries) reveal the opposite patterns. We discuss the implications of our findings for the literature on homeownership regimes and wealth inequality, with a specific focus on young adults.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

In this study, we merge the literature on homeownership regimes, which focuses to a lesser extent on the consequences of wealth and social inequality, with the literature on wealth and social stratification, which overlooks the importance of homeownership regimes in contributing to those inequalities. Within this framework, we examine to what extent homeownership regimes shape class inequality in homeownership among young adults and the mortgage debt burden that usually accompanies it. We first develop an updated typology of homeownership regimes that incorporates the role of the family via intergenerational wealth transfers (IWT) such as gifts and housing assets. This dimension was theoretically underdeveloped and empirically absent from previous homeownership typologies. Second, we employ this typology to investigate class-based gaps in homeownership and mortgage debt burden within and between homeownership regimes. This is done by pooling data for a total of 20 countries from two sources: the European Union Statistics on Income and Living Conditions (EU-SILC) 2013–2014 (EuroStat) for EU countries, and the Household Expenditure Survey 2012–2013 (CBS) for Israel. Using multivariate modeling, we find that homeownership regimes in which IWT in the form of financial support is common practice increase class inequality in homeownership compared to regimes in which IWT of assets is common practice. Contrary to the literature suggesting that liberal mortgage markets advance inclusion, it appears that in the homeownership regime characterized by the most liberal housing finance system (which includes Northern European countries and the Netherlands), class inequality in mortgaged homeownership is the widest but class inequality in mortgage debt burden is the narrowest. Homeownership regimes characterized by IWT of assets (which include Southern and Central Eastern European countries) reveal the opposite patterns. We discuss the implications of our findings for the literature on homeownership regimes and wealth inequality, with a specific focus on young adults.

@article{Daysaletal2022,
  title = {The Correlation of Net and Gross Wealth across Generations: The Role of Parent Income and Child Age},
  author = {Daysal, N. Meltem and Lovenheim, Michael F. and Wasser, David N.},
  year = {2022},
  month = may,
  journal = {AEA Papers and Proceedings},
  volume = {112},
  pages = {73--77},
  doi = {10.1257/pandp.20221058},
  url = {https://doi.org/10.1257/pandp.20221058},
  abstract = {We use Danish register data to examine intergenerational rank-rank correlations in net wealth and gross housing wealth by child age and parental income. Our results indicate that gross housing wealth correlations are more stable by child age than are net wealth correlations, which we argue is due to a downward bias in net wealth correlations from transitory debt. Intergenerational housing wealth correlations also are larger for lower-income families, while net wealth correlations do not vary much across the income distribution. Finally, we show that intergenerational net wealth and gross housing wealth correlations move in opposite directions across the income distribution.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Methods of Estimation of Wealth Inequality}
}

We use Danish register data to examine intergenerational rank-rank correlations in net wealth and gross housing wealth by child age and parental income. Our results indicate that gross housing wealth correlations are more stable by child age than are net wealth correlations, which we argue is due to a downward bias in net wealth correlations from transitory debt. Intergenerational housing wealth correlations also are larger for lower-income families, while net wealth correlations do not vary much across the income distribution. Finally, we show that intergenerational net wealth and gross housing wealth correlations move in opposite directions across the income distribution.

@article{DruedahlMartinello2022,
  title = {Long-Run Saving Dynamics: Evidence from Unexpected Inheritances},
  author = {Druedahl, Jeppe and Martinello, Alessandro},
  year = {2022},
  month = sep,
  journal = {The Review of Economics and Statistics},
  volume = {104},
  number = {5},
  pages = {1079--1095},
  doi = {10.1162/rest_a_01004},
  url = {https://doi.org/10.1162/rest_a_01004},
  abstract = {We exploit inheritance episodes to provide novel causal evidence on the long-run effects of a large financial windfall on saving behavior. For identification, we combine a longitudinal panel of administrative wealth reports with variation in the timing of sudden, unexpected parental deaths. We show that after inheritance, net worth converges toward the path established before parental death, with only one-third of the initial windfall remaining after nine years. We interpret these findings through the lens of a generalized consumption-saving framework. To quantitatively replicate this behavior, life-cycle consumption models require impatient consumers and strong precautionary saving motives.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

We exploit inheritance episodes to provide novel causal evidence on the long-run effects of a large financial windfall on saving behavior. For identification, we combine a longitudinal panel of administrative wealth reports with variation in the timing of sudden, unexpected parental deaths. We show that after inheritance, net worth converges toward the path established before parental death, with only one-third of the initial windfall remaining after nine years. We interpret these findings through the lens of a generalized consumption-saving framework. To quantitatively replicate this behavior, life-cycle consumption models require impatient consumers and strong precautionary saving motives.

@inproceedings{GarbintiSavignac2022,
  title = {Intergenerational Home Ownership in {{France}} over the Twentieth Century},
  booktitle = {Measuring Distribution and Mobility of Income and Wealth},
  author = {Garbinti, Bertrand and Savignac, Fr{\'e}d{\'e}rique},
  editor = {Chetty, Raj and Friedman, John N. and Gornick, Janet C. and Johnson, Barry and Kennickell, Arthur},
  year = {2022},
  series = {National {{Bureau}} of {{Economic Research}} Studies in Income and Wealth},
  volume = {80},
  pages = {411--436},
  publisher = {University of Chicago Press},
  address = {Chicago},
  doi = {10.7208/chicago/9780226816043.003.0014},
  url = {https://doi.org/10.7208/chicago/9780226816043.003.0014},
  abstract = {We estimate the intergenerational correlation in homeownership status between two generations for cohorts covering the 20th century. First, we find higher intergenerational correlation in France compared to previous results obtained for the UK for similar cohorts. Second, the intergenerational correlation is increasing across cohorts, with a relatively stable probability of being a homeowner for children of homeowners over time, and a decreasing probability for children whose parents were not homeowners. Third, the effect of parents' tenure status is persistent over the children's life cycle. Fourth, when isolating two subpopulations based on the receipt of intergenerational transfers, we find significant intergenerational correlation in tenure status for children who did not receive any gift or inheritance, as well as for children who received intergenerational transfers, suggesting that other factors such as intergenerational income correlation or the transmission of preferences might also explain this intergenerational correlation.},
  isbn = {978-0-226-81604-3},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth},
  chapter = {13}
}

We estimate the intergenerational correlation in homeownership status between two generations for cohorts covering the 20th century. First, we find higher intergenerational correlation in France compared to previous results obtained for the UK for similar cohorts. Second, the intergenerational correlation is increasing across cohorts, with a relatively stable probability of being a homeowner for children of homeowners over time, and a decreasing probability for children whose parents were not homeowners. Third, the effect of parents' tenure status is persistent over the children's life cycle. Fourth, when isolating two subpopulations based on the receipt of intergenerational transfers, we find significant intergenerational correlation in tenure status for children who did not receive any gift or inheritance, as well as for children who received intergenerational transfers, suggesting that other factors such as intergenerational income correlation or the transmission of preferences might also explain this intergenerational correlation.

@article{HallstenThaning2022,
  title = {Wealth as One of the ``Big Four'' {{SES}} Dimensions in Intergenerational Transmissions},
  author = {H{\"a}llsten, Martin and Thaning, Max},
  year = {2022},
  month = jun,
  journal = {Social Forces},
  volume = {100},
  number = {4},
  pages = {1533--1560},
  doi = {10.1093/sf/soab080},
  url = {https://doi.org/10.1093/sf/soab080},
  abstract = {Recent scholarship on mobility has increasingly incorporated wealth. We ask if wealth brings anything new to mobility research or is just a standard socioeconomic status (SES) dimension in disguise. We exploit Swedish administrative registers, which contain rich SES measures over individuals' lives for both parents' and children's generations. Using sibling correlations to estimate a baseline of shared family background influence, we then perform a total decomposition for each SES dimension and their overlaps. We find that wealth is a distinct dimension of SES that is very different from education, occupation, and income. Parental wealth cannot be substituted for other SES dimensions in understanding child's wealth attainment. Moreover, parental wealth substantially moderates intergenerational reproduction in other dimensions: The wealthiest have higher reproduction rates in all child outcomes, but in particular for children's income and wealth. Excluding wealth leads to underestimating intergenerational inequality, aggravated by its qualitatively unique status as an SES resource. We conclude that---alongside the SES resources education, occupation, and income---wealth emerges as an integral and unique dimension of what we choose to call the ``big four'' of social stratification.},
  keywords = {Determinants of Wealth and Wealth Inequality,Impacts of Wealth Inequality,Intergenerational Wealth,Methods of Estimation of Wealth Inequality}
}

Recent scholarship on mobility has increasingly incorporated wealth. We ask if wealth brings anything new to mobility research or is just a standard socioeconomic status (SES) dimension in disguise. We exploit Swedish administrative registers, which contain rich SES measures over individuals' lives for both parents' and children's generations. Using sibling correlations to estimate a baseline of shared family background influence, we then perform a total decomposition for each SES dimension and their overlaps. We find that wealth is a distinct dimension of SES that is very different from education, occupation, and income. Parental wealth cannot be substituted for other SES dimensions in understanding child's wealth attainment. Moreover, parental wealth substantially moderates intergenerational reproduction in other dimensions: The wealthiest have higher reproduction rates in all child outcomes, but in particular for children's income and wealth. Excluding wealth leads to underestimating intergenerational inequality, aggravated by its qualitatively unique status as an SES resource. We conclude that—alongside the SES resources education, occupation, and income—wealth emerges as an integral and unique dimension of what we choose to call the ``big four'' of social stratification.

@article{Nolanetal2022,
  title = {Intergenerational Wealth Transfers in {{Great Britain}} from the {{Wealth}} and {{Assets Survey}} in Comparative Perspective},
  author = {Nolan, Brian and Palomino, Juan C. and Van Kerm, Philippe and Morelli, Salvatore},
  year = {2022},
  month = apr,
  journal = {Fiscal Studies},
  doi = {10.1111/1475-5890.12299},
  url = {https://doi.org/10.1111/1475-5890.12299},
  abstract = {Wealth surveys that collect information on intergenerational transfers provide new scope for comparative study of those transfers and their relationship with wealth across rich countries. However, this is problematic in the case of Great Britain, due to specific features of the Wealth and Assets Survey (WAS), the central source of survey-based household wealth data, in particular the extent of missing information in its first wave. This has severely constrained efforts to investigate patterns of wealth transfer in Great Britain in comparative perspective. In this paper, we set out these issues and present ways of dealing with them. On this basis, we then examine the main similarities and differences in patterns of intergenerational transmission of wealth between Great Britain, France, Germany, Italy, Spain and the United States. Our findings reveal common features across these countries as well as some important respects in which Great Britain was distinctive, though less of an outlier than the US. About 35 per cent of British households reported receiving an intergenerational wealth transfer at some point, similar to most of the comparator countries but much higher than the US. We conclude by setting out how WAS can be enhanced to address these issues at source, proposals with which the Office for National Statistics is seriously engaged.},
  keywords = {Cross-National Comparisons,Intergenerational Wealth}
}

Wealth surveys that collect information on intergenerational transfers provide new scope for comparative study of those transfers and their relationship with wealth across rich countries. However, this is problematic in the case of Great Britain, due to specific features of the Wealth and Assets Survey (WAS), the central source of survey-based household wealth data, in particular the extent of missing information in its first wave. This has severely constrained efforts to investigate patterns of wealth transfer in Great Britain in comparative perspective. In this paper, we set out these issues and present ways of dealing with them. On this basis, we then examine the main similarities and differences in patterns of intergenerational transmission of wealth between Great Britain, France, Germany, Italy, Spain and the United States. Our findings reveal common features across these countries as well as some important respects in which Great Britain was distinctive, though less of an outlier than the US. About 35 per cent of British households reported receiving an intergenerational wealth transfer at some point, similar to most of the comparator countries but much higher than the US. We conclude by setting out how WAS can be enhanced to address these issues at source, proposals with which the Office for National Statistics is seriously engaged.

@article{Palominoetal2022,
  title = {Wealth Inequality, Intergenerational Transfers, and Family Background},
  author = {Palomino, Juan C. and Marrero, Gustavo A. and Nolan, Brian and Rodr{\'i}guez, Juan G.},
  year = {2022},
  month = jul,
  journal = {Oxford Economic Papers},
  volume = {74},
  number = {3},
  pages = {643--670},
  doi = {10.1093/oep/gpab052},
  url = {https://doi.org/10.1093/oep/gpab052},
  abstract = {We estimate the contribution of intergenerational transfers (inheritances and gifts) and family background to wealth inequality in four OECD countries: France, Spain, Great Britain, and the USA. We compare the observed wealth distribution with a non-parametric counterfactual distribution where all differences in wealth associated with intergenerational transfers and family background are removed. Despite the diversity of the countries analysed, we find similar patterns. The combined contribution of intergenerational transfers and family background to wealth inequality is sizeable in the four countries, ranging from 36\% in Great Britain to 49\% in the USA. When interactions between the two factors are accounted for, and the Shapley value decomposition is used to fully disentangle the contribution of each factor based on its marginal contribution, intergenerational transfers account for between 26\% in Great Britain and 36\% of wealth inequality in France, with family background ranging from 9\% in France to 17\% in the USA.},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

We estimate the contribution of intergenerational transfers (inheritances and gifts) and family background to wealth inequality in four OECD countries: France, Spain, Great Britain, and the USA. We compare the observed wealth distribution with a non-parametric counterfactual distribution where all differences in wealth associated with intergenerational transfers and family background are removed. Despite the diversity of the countries analysed, we find similar patterns. The combined contribution of intergenerational transfers and family background to wealth inequality is sizeable in the four countries, ranging from 36% in Great Britain to 49% in the USA. When interactions between the two factors are accounted for, and the Shapley value decomposition is used to fully disentangle the contribution of each factor based on its marginal contribution, intergenerational transfers account for between 26% in Great Britain and 36% of wealth inequality in France, with family background ranging from 9% in France to 17% in the USA.

@article{Salas-RojoRodriguez2022,
  title = {Inheritances and Wealth Inequality: A Machine Learning Approach},
  author = {{Salas-Rojo}, Pedro and Rodr{\'i}guez, Juan Gabriel},
  year = {2022},
  month = mar,
  journal = {The Journal of Economic Inequality},
  volume = {20},
  number = {1},
  pages = {27--51},
  doi = {10.1007/s10888-022-09528-8},
  url = {https://doi.org/10.1007/s10888-022-09528-8},
  abstract = {This paper explores the relationship between received inheritances and the distribution of wealth (financial, non-financial and total) in four developed countries: the United States, Canada, Italy and Spain. We follow the inequality of opportunity (IOp) literature and\,-\,considering inheritances as the only circumstance- we show that traditional IOp approaches can lead to non-robust and arbitrary measures of IOp depending on discretionary cut-off choices of a continuous circumstance such as inheritances. To overcome this limitation, we apply Machine Learning methods (`random forest' algorithm) to optimize the choice of cut-offs and we find that IOp explains over 60\% of wealth inequality in the US and Spain (using the Gini coefficient), and more than 40\% in Italy and Canada. Including parental education as an additional circumstance -available for the US and Italy- we find that inheritances are still the main contributor. Finally, using the S-Gini index with different parameters to weight different parts of the distribution, we find that the effect of inheritances is more prominent at the middle of the wealth distribution, while parental education is more important for the asset-poor.},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Methods of Estimation of Wealth Inequality}
}

This paper explores the relationship between received inheritances and the distribution of wealth (financial, non-financial and total) in four developed countries: the United States, Canada, Italy and Spain. We follow the inequality of opportunity (IOp) literature and\,-\,considering inheritances as the only circumstance- we show that traditional IOp approaches can lead to non-robust and arbitrary measures of IOp depending on discretionary cut-off choices of a continuous circumstance such as inheritances. To overcome this limitation, we apply Machine Learning methods (`random forest' algorithm) to optimize the choice of cut-offs and we find that IOp explains over 60% of wealth inequality in the US and Spain (using the Gini coefficient), and more than 40% in Italy and Canada. Including parental education as an additional circumstance -available for the US and Italy- we find that inheritances are still the main contributor. Finally, using the S-Gini index with different parameters to weight different parts of the distribution, we find that the effect of inheritances is more prominent at the middle of the wealth distribution, while parental education is more important for the asset-poor.

@article{Ageretal2021,
  title = {The Intergenerational Effects of a Large Wealth Shock: White {{Southerners}} after the {{Civil War}}},
  author = {Ager, Philipp and Boustan, Leah and Eriksson, Katherine},
  year = {2021},
  journal = {American Economic Review},
  volume = {111},
  number = {11},
  pages = {3767--3794},
  doi = {10.1257/aer.20191422},
  url = {https://doi.org/10.1257/aer.20191422},
  abstract = {The nullification of slave wealth after the US Civil War (1861--1865) was one of the largest episodes of wealth compression in history. We document that White Southern households that owned more slaves in 1860 lost substantially more wealth by 1870, relative to Southern households that had been equally wealthy before the war. Yet, their sons almost entirely recovered from this wealth shock by 1900, and their grandsons completely converged by 1940. Marriage networks and connections to other elite families may have aided in recovery, whereas transmission of entrepreneurship and skills appear less central.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

The nullification of slave wealth after the US Civil War (1861–1865) was one of the largest episodes of wealth compression in history. We document that White Southern households that owned more slaves in 1860 lost substantially more wealth by 1870, relative to Southern households that had been equally wealthy before the war. Yet, their sons almost entirely recovered from this wealth shock by 1900, and their grandsons completely converged by 1940. Marriage networks and connections to other elite families may have aided in recovery, whereas transmission of entrepreneurship and skills appear less central.

@techreport{Bourquinetal2021,
  type = {{{IFS Report}}},
  title = {Report Summary: Inheritances and Inequality over the Life Cycle: What Will They Mean for Younger Generations?},
  author = {Bourquin, Pascale and Joyce, Robert and Sturrock, David},
  year = {2021},
  month = apr,
  number = {R188},
  institution = {Institute for Fiscal Studies},
  doi = {10.1920/re.ifs.2021.0188},
  url = {https://doi.org/10.1920/re.ifs.2021.0188},
  keywords = {Intergenerational Wealth}
}

@techreport{BurrowsLennartz2021,
  type = {Discussion {{Paper}}},
  title = {The Timing of Intergenerational Transfers and Household Wealth: Too Little, Too Late?},
  author = {Burrows, Vivien and Lennartz, Chris},
  year = {2021},
  month = may,
  number = {2021-11},
  url = {https://research.reading.ac.uk/economics/research/discussion-papers/},
  abstract = {Wealth transfers between family members play an important role in explaining wealth accumulation and wealth inequalities. While part of this is accounted for by the size of the transfer, the timing of the transfer is also likely to be important, reflecting either a cumulative advantage effect or a lifecycle effect. This paper uses data from the Eurosystem Housing Finance and Consumption Survey to analyse how the age at which a transfer was received affects household net wealth and different components of household wealth. We find that the age at which a transfer is received does matter: after controlling for the total value and number of transfers received, receiving a transfer later in life has a negative impact on household net wealth, and this effect appears to operate primarily through housing wealth, and in particular non-HMR property wealth. We then explore the extent to which these effects vary across European countries.},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Wealth transfers between family members play an important role in explaining wealth accumulation and wealth inequalities. While part of this is accounted for by the size of the transfer, the timing of the transfer is also likely to be important, reflecting either a cumulative advantage effect or a lifecycle effect. This paper uses data from the Eurosystem Housing Finance and Consumption Survey to analyse how the age at which a transfer was received affects household net wealth and different components of household wealth. We find that the age at which a transfer is received does matter: after controlling for the total value and number of transfers received, receiving a transfer later in life has a negative impact on household net wealth, and this effect appears to operate primarily through housing wealth, and in particular non-HMR property wealth. We then explore the extent to which these effects vary across European countries.

@article{Cummins2021,
  title = {Where Is the Middle Class? Evidence from 60 Million {{English}} Death and Probate Records, 1892--1992},
  author = {Cummins, Neil},
  year = {2021},
  journal = {The Journal of Economic History},
  volume = {81},
  number = {2},
  pages = {359--404},
  doi = {10.1017/S0022050721000164},
  url = {https://doi.org/10.1017/S0022050721000164},
  abstract = {This article analyzes a newly constructed individual level dataset of every English death and probate from 1892--1992. This analysis shows that the twentieth century's ``Great Equalization'' of wealth stalled in mid-century. The probate rate, which captures the proportion of English holding any significant wealth at death rose from 10 percent in the 1890s to 40 percent by 1950 and has stagnated to 1992. Despite the large declines in the wealth share of the top 1 percent, from 73 to 20 percent, the median English individual died with almost nothing throughout. All changes in inequality after 1950 involve a reshuffling of wealth within the top 30 percent. I translate the individual level data to synthetic households; the majority have at least one member probated. Yet the bottom 60 percent of households hold only 12 percent of all wealth, at their peak wealth-holding level, in the early 1990s. I also compare the new wealth data with existing estimates of top wealth shares, home-ownership trends, wealth survey distributions, aggregate wealth, and the wealth Gini coefficient.},
  keywords = {Intergenerational Wealth,Wealth Taxation}
}

This article analyzes a newly constructed individual level dataset of every English death and probate from 1892–1992. This analysis shows that the twentieth century's ``Great Equalization'' of wealth stalled in mid-century. The probate rate, which captures the proportion of English holding any significant wealth at death rose from 10 percent in the 1890s to 40 percent by 1950 and has stagnated to 1992. Despite the large declines in the wealth share of the top 1 percent, from 73 to 20 percent, the median English individual died with almost nothing throughout. All changes in inequality after 1950 involve a reshuffling of wealth within the top 30 percent. I translate the individual level data to synthetic households; the majority have at least one member probated. Yet the bottom 60 percent of households hold only 12 percent of all wealth, at their peak wealth-holding level, in the early 1990s. I also compare the new wealth data with existing estimates of top wealth shares, home-ownership trends, wealth survey distributions, aggregate wealth, and the wealth Gini coefficient.

@article{Fagerengetal2021a,
  title = {Why Do Wealthy Parents Have Wealthy Children?},
  author = {Fagereng, Andreas and Mogstad, Magne and R{\o}nning, Marte},
  year = {2021},
  month = mar,
  journal = {Journal of Political Economy},
  volume = {129},
  number = {3},
  pages = {703--756},
  doi = {10.1086/712446},
  url = {https://doi.org/10.1086/712446},
  abstract = {We show that family background matters significantly for children's accumulation of wealth and investor behavior as adults, even when removing the genetic connection between children and the parents raising them. The analysis is made possible by linking Korean-born children who were adopted at infancy by Norwegian parents to a population panel data set with detailed information on wealth and socioeconomic characteristics. The mechanism by which these Korean-Norwegian adoptees were assigned to adoptive families is known and effectively random. This mechanism allows us to estimate the causal effects from an adoptee being raised in one type of family versus another.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

We show that family background matters significantly for children's accumulation of wealth and investor behavior as adults, even when removing the genetic connection between children and the parents raising them. The analysis is made possible by linking Korean-born children who were adopted at infancy by Norwegian parents to a population panel data set with detailed information on wealth and socioeconomic characteristics. The mechanism by which these Korean-Norwegian adoptees were assigned to adoptive families is known and effectively random. This mechanism allows us to estimate the causal effects from an adoptee being raised in one type of family versus another.

@article{Morellietal2021,
  title = {Inheritance, Gifts and the Accumulation of Wealth for Low-Income Households},
  author = {Morelli, Salvatore and Nolan, Brian and Palomino, Juan C. and Van Kerm, Philippe},
  year = {2021},
  month = dec,
  journal = {Journal of European Social Policy},
  volume = {31},
  number = {5},
  pages = {533--548},
  doi = {10.1177/09589287211040419},
  url = {https://doi.org/10.1177/09589287211040419},
  abstract = {Many low-income households in rich countries have very little wealth, but the role of intergenerational wealth transmission in underpinning this deficit is not known. This article seeks to fill that gap by investigating patterns of past wealth transfer receipt for low-income versus other households in seven rich countries and assessing the contribution that these transfers, or their absence, make to current wealth levels. We find that households on low incomes are relatively disadvantaged in terms of intergenerational transfers received in the past, both in terms of the likelihood of having received any and the amounts received by those who do benefit from such transfers. The role that this disadvantage plays in the linkage between current low-income and low wealth is assessed and evidence presented that it is significant. Simulation of a universal wealth transfer scheme or `capital endowment' on reaching adulthood for two countries shows that such a policy could lead to a marked decline in the proportion of low-income adults with negative or no wealth. This and alternative or complementary policy responses to these wealth deficits merit the most serious attention.},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Many low-income households in rich countries have very little wealth, but the role of intergenerational wealth transmission in underpinning this deficit is not known. This article seeks to fill that gap by investigating patterns of past wealth transfer receipt for low-income versus other households in seven rich countries and assessing the contribution that these transfers, or their absence, make to current wealth levels. We find that households on low incomes are relatively disadvantaged in terms of intergenerational transfers received in the past, both in terms of the likelihood of having received any and the amounts received by those who do benefit from such transfers. The role that this disadvantage plays in the linkage between current low-income and low wealth is assessed and evidence presented that it is significant. Simulation of a universal wealth transfer scheme or `capital endowment' on reaching adulthood for two countries shows that such a policy could lead to a marked decline in the proportion of low-income adults with negative or no wealth. This and alternative or complementary policy responses to these wealth deficits merit the most serious attention.

@article{Nolanetal2021,
  title = {Intergenerational Wealth Transfers and Wealth Inequality in Rich Countries: What Do We Learn from {{Gini}} Decomposition?},
  author = {Nolan, Brian and Palomino, Juan C. and Van Kerm, Philippe and Morelli, Salvatore},
  year = {2021},
  month = feb,
  journal = {Economics Letters},
  volume = {199},
  doi = {10.1016/j.econlet.2020.109701},
  url = {https://doi.org/10.1016/j.econlet.2020.109701},
  abstract = {The role of intergenerational transfers of wealth via inheritance and gifts inter vivos in the accumulation of household wealth and the generation of wealth inequality has been hotly debated. This paper uses data from household wealth surveys for six rich countries -- Britain, France, Germany, Italy, Spain and the US -- to assess the contribution of intergenerational wealth transfers to wealth inequality using decomposition methods for the Gini coefficient. The results show that transfer wealth is consistently a good deal more unequally distributed than non-transfer wealth and total wealth. Transfer wealth accounts for only about one-tenth of overall wealth inequality for the US compared to one-third for Germany and Italy. This mirrors the importance of transfer wealth in total wealth in each country, with differences in inequality in transfer wealth and its correlation with total wealth having only a modest impact. We find that a marginal percentage increase in all transfers reduces total wealth inequality in Britain, Germany and the US, while it would increase total wealth inequality in France, Italy and Spain.},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth},
  note = {109701}
}

The role of intergenerational transfers of wealth via inheritance and gifts inter vivos in the accumulation of household wealth and the generation of wealth inequality has been hotly debated. This paper uses data from household wealth surveys for six rich countries – Britain, France, Germany, Italy, Spain and the US – to assess the contribution of intergenerational wealth transfers to wealth inequality using decomposition methods for the Gini coefficient. The results show that transfer wealth is consistently a good deal more unequally distributed than non-transfer wealth and total wealth. Transfer wealth accounts for only about one-tenth of overall wealth inequality for the US compared to one-third for Germany and Italy. This mirrors the importance of transfer wealth in total wealth in each country, with differences in inequality in transfer wealth and its correlation with total wealth having only a modest impact. We find that a marginal percentage increase in all transfers reduces total wealth inequality in Britain, Germany and the US, while it would increase total wealth inequality in France, Italy and Spain.

@unpublished{Raya-Munte2021,
  title = {Heterogeneous Saving Behavior and Permanent Income},
  author = {{Raya-Munt{\'e}}, Albert},
  year = {2021},
  month = nov,
  abstract = {Do high permanent income households tend to accumulate a larger amount of wealth relative to income over the life cycle? Using Spanish household-level panel data from the Survey of Household Finances, I estimate permanent income for each household and document a positive and strong relationship between the latter and wealth-to-income ratios over the life cycle. In particular, the median household in the 8th decile and above of the permanent income distribution tends to exhibit wealth-to-income ratios at least 50\% larger than the median household in the 2nd decile. To study the determinants of this nonhomothetic behavior, I build a standard partial equilibrium life-cycle model of homothetic household consumption and saving behavior which, by construction, features homogeneous wealth accumulation relative to income. This serves as a benchmark to help investigate the quantitative contribution of different sources of non-homothetic behavior: the pension system, accidental and voluntary bequests, intergenerational transmission of ability, and preference heterogeneity. A calibrated version of this model for Spain shows that nonhomotheticities stemming from the pension system and the transmission of wealth via bequests account, on average, for 70\% of documented wealth-to-income ratios differences. However, these sources are not able to account for the large amount of wealth - relative to income - the top 20\% of households accumulate. To this end, the model calibration approach requires a sizable amount of preference heterogeneity at the top of the permanent income distribution.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth},
  note = {Unpublished manuscript}
}

Do high permanent income households tend to accumulate a larger amount of wealth relative to income over the life cycle? Using Spanish household-level panel data from the Survey of Household Finances, I estimate permanent income for each household and document a positive and strong relationship between the latter and wealth-to-income ratios over the life cycle. In particular, the median household in the 8th decile and above of the permanent income distribution tends to exhibit wealth-to-income ratios at least 50% larger than the median household in the 2nd decile. To study the determinants of this nonhomothetic behavior, I build a standard partial equilibrium life-cycle model of homothetic household consumption and saving behavior which, by construction, features homogeneous wealth accumulation relative to income. This serves as a benchmark to help investigate the quantitative contribution of different sources of non-homothetic behavior: the pension system, accidental and voluntary bequests, intergenerational transmission of ability, and preference heterogeneity. A calibrated version of this model for Spain shows that nonhomotheticities stemming from the pension system and the transmission of wealth via bequests account, on average, for 70% of documented wealth-to-income ratios differences. However, these sources are not able to account for the large amount of wealth - relative to income - the top 20% of households accumulate. To this end, the model calibration approach requires a sizable amount of preference heterogeneity at the top of the permanent income distribution.

@article{Seelkopfetal2021,
  title = {The Rise of Modern Taxation: {{A}} New Comprehensive Dataset of Tax Introductions Worldwide},
  author = {Seelkopf, Laura and Bubek, Moritz and Eihmanis, Edgars and Ganderson, Joseph and Limberg, Julian and Mnaili, Youssef and Zuluaga, Paula and Genschel, Philipp},
  year = {2021},
  month = jan,
  journal = {The Review of International Organizations},
  volume = {16},
  number = {1},
  pages = {239--263},
  doi = {10.1007/s11558-019-09359-9},
  url = {https://doi.org/10.1007/s11558-019-09359-9},
  abstract = {This article describes the new Tax Introduction Dataset (TID). Listing the year and the mode of the first permanent introduction of six major taxes (inheritance tax, personal income tax, corporate income tax, social security contributions, general sales tax and value added tax) in 220 countries, 1750--2018, TID is the most comprehensive dataset of its kind. The comprehensiveness of our measure is of critical value to empirical work on the causes of tax innovation and its consequences for state, society and economy. In this paper, we explain the selection of our tax sample and the structure of the dataset, descriptively map temporal and regional patterns of tax introductions around the world, and draw on TID to investigate associations between tax introductions and economic development, war, and democratization.},
  keywords = {Data Sources: Estate Inheritance and Gift Taxes,Estate Inheritance and Gift Taxes,Intergenerational Wealth},
  url_tax_introduction_database = {https://bibbase.org/network/publication/genschel-seelkopf-taxintroductiondatabase-2019},
  url_codebook = {https://bibbase.org/network/publication/genschel-seelkopf-codebooktaxintroductiondatasettid-2019}
}

This article describes the new Tax Introduction Dataset (TID). Listing the year and the mode of the first permanent introduction of six major taxes (inheritance tax, personal income tax, corporate income tax, social security contributions, general sales tax and value added tax) in 220 countries, 1750–2018, TID is the most comprehensive dataset of its kind. The comprehensiveness of our measure is of critical value to empirical work on the causes of tax innovation and its consequences for state, society and economy. In this paper, we explain the selection of our tax sample and the structure of the dataset, descriptively map temporal and regional patterns of tax introductions around the world, and draw on TID to investigate associations between tax introductions and economic development, war, and democratization.

@article{WeiYang2021,
  title = {The Impact of Inheritance on the Distribution of Wealth: Evidence from {{China}}},
  author = {Wei, Hongyao and Yang, Zhengyi},
  year = {2021},
  journal = {Review of Income and Wealth},
  doi = {10.1111/roiw.12513},
  url = {https://doi.org/10.1111/roiw.12513},
  abstract = {Using the China Health and Retirement Longitudinal Study, we investigate household inheritances' structural characteristics and their effects on wealth distribution. First, we find that the proportion of households receiving inheritances in China is slightly lower than that of some European countries and the United States, and the inheritance scale, especially the proportion of inheritances in household net worth, is much lower. Second, inheritances can significantly promote wealth accumulation, and wealthy households are more likely to receive larger-scale inheritances. Therefore, inheritances can aggravate class stratification and reduce social mobility. Third, inheritances reduce relative wealth inequality but widen the absolute wealth gap. This effect's duality is that although wealthy households have inheritances on a larger scale, the relative importance of the inheritance is more significant for poorer households, who inherit more relative to their household net worth. Altruistic motivations of inheritance donors can help explain this phenomenon.},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Using the China Health and Retirement Longitudinal Study, we investigate household inheritances' structural characteristics and their effects on wealth distribution. First, we find that the proportion of households receiving inheritances in China is slightly lower than that of some European countries and the United States, and the inheritance scale, especially the proportion of inheritances in household net worth, is much lower. Second, inheritances can significantly promote wealth accumulation, and wealthy households are more likely to receive larger-scale inheritances. Therefore, inheritances can aggravate class stratification and reduce social mobility. Third, inheritances reduce relative wealth inequality but widen the absolute wealth gap. This effect's duality is that although wealthy households have inheritances on a larger scale, the relative importance of the inheritance is more significant for poorer households, who inherit more relative to their household net worth. Altruistic motivations of inheritance donors can help explain this phenomenon.

@article{Barthetal2020,
  title = {Genetic Endowments and Wealth Inequality},
  author = {Barth, Daniel and Papageorge, Nicholas W. and Thom, Kevin},
  year = {2020},
  journal = {Journal of Political Economy},
  volume = {128},
  number = {4},
  pages = {1474--1522},
  publisher = {University of Chicago Press},
  doi = {10.1086/705415},
  url = {https://doi.org/10.1086/705415},
  abstract = {We show that genetic endowments linked to educational attainment strongly and robustly predict wealth at retirement. The estimated relationship is not fully explained by flexibly controlling for education and labor income. We therefore investigate a host of additional mechanisms that could account for the gene-wealth gradient, including inheritances, mortality, risk preferences, portfolio decisions, beliefs about the probabilities of macroeconomic events, and planning horizons. We provide evidence that genetic endowments related to human capital accumulation are associated with wealth not only through educational attainment and labor income but also through a facility with complex financial decision-making.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

We show that genetic endowments linked to educational attainment strongly and robustly predict wealth at retirement. The estimated relationship is not fully explained by flexibly controlling for education and labor income. We therefore investigate a host of additional mechanisms that could account for the gene-wealth gradient, including inheritances, mortality, risk preferences, portfolio decisions, beliefs about the probabilities of macroeconomic events, and planning horizons. We provide evidence that genetic endowments related to human capital accumulation are associated with wealth not only through educational attainment and labor income but also through a facility with complex financial decision-making.

@article{Blacketal2020,
  title = {Poor Little Rich Kids? {{The}} Role of Nature versus Nurture in Wealth and Other Economic Outcomes and Behaviours},
  author = {Black, Sandra E and Devereux, Paul J and Lundborg, Petter and Majlesi, Kaveh},
  year = {2020},
  journal = {The Review of Economic Studies},
  volume = {87},
  number = {4},
  pages = {1683--1725},
  doi = {10.1093/restud/rdz038},
  url = {https://doi.org/10.1093/restud/rdz038},
  abstract = {Wealth is highly correlated between parents and their children; however, little is known about the extent to which these relationships are genetic or determined by environmental factors. We use administrative data on the net wealth of a large sample of Swedish adoptees merged with similar information for their biological and adoptive parents. Comparing the relationship between the wealth of adopted and biological parents and that of the adopted child, we find that, even prior to any inheritance, there is a substantial role for environment and a much smaller role for pre-birth factors and we find little evidence that nature/nurture interactions are important. When bequests are taken into account, the role of adoptive parental wealth becomes much stronger. Our findings suggest that wealth transmission is not primarily because children from wealthier families are inherently more talented or more able but that, even in relatively egalitarian Sweden, wealth begets wealth. We further build on the existing literature by providing a more comprehensive view of the role of nature and nurture on intergenerational mobility, looking at a wide range of different outcomes using a common sample and method. We find that environmental influences are relatively more important for wealth-related variables such as savings and investment decisions than for human capital. We conclude by studying consumption as an overall measure of welfare and find that, like wealth, it is more determined by environment than by biology.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Wealth is highly correlated between parents and their children; however, little is known about the extent to which these relationships are genetic or determined by environmental factors. We use administrative data on the net wealth of a large sample of Swedish adoptees merged with similar information for their biological and adoptive parents. Comparing the relationship between the wealth of adopted and biological parents and that of the adopted child, we find that, even prior to any inheritance, there is a substantial role for environment and a much smaller role for pre-birth factors and we find little evidence that nature/nurture interactions are important. When bequests are taken into account, the role of adoptive parental wealth becomes much stronger. Our findings suggest that wealth transmission is not primarily because children from wealthier families are inherently more talented or more able but that, even in relatively egalitarian Sweden, wealth begets wealth. We further build on the existing literature by providing a more comprehensive view of the role of nature and nurture on intergenerational mobility, looking at a wide range of different outcomes using a common sample and method. We find that environmental influences are relatively more important for wealth-related variables such as savings and investment decisions than for human capital. We conclude by studying consumption as an overall measure of welfare and find that, like wealth, it is more determined by environment than by biology.

@article{DoorleyPestel2020,
  title = {Labour Supply after Inheritances and the Role of Expectations},
  author = {Doorley, Karina and Pestel, Nico},
  year = {2020},
  journal = {Oxford Bulletin of Economics and Statistics},
  volume = {82},
  number = {4},
  pages = {843--863},
  doi = {10.1111/obes.12353},
  url = {http://doi.org/10.1111/obes.12353},
  abstract = {This paper examines the effect of inheritances on labour supply, distinguishing between unanticipated and anticipated inheritances. We use household and individual level micro-data for Germany to investigate the effect of inheritances on a number of labour market outcomes. Women are less likely to work full-time after an inheritance and their desired and actual hours of work decrease by 1--2 per week, on average. The magnitude of the effect is found to be larger and more precisely estimated for households without children and liquidity constrained households. Other margins such as time use outside the labour market and satisfaction are also found to be affected by inheritance receipt.},
  keywords = {Intergenerational Wealth}
}

This paper examines the effect of inheritances on labour supply, distinguishing between unanticipated and anticipated inheritances. We use household and individual level micro-data for Germany to investigate the effect of inheritances on a number of labour market outcomes. Women are less likely to work full-time after an inheritance and their desired and actual hours of work decrease by 1–2 per week, on average. The magnitude of the effect is found to be larger and more precisely estimated for households without children and liquidity constrained households. Other margins such as time use outside the labour market and satisfaction are also found to be affected by inheritance receipt.

@article{Grohetal2020,
  title = {Estate Taxes and Business Transfers across the Globe: A Configurational Analysis},
  author = {Groh, Maximilian and Scheef, Christine and Zellweger, Thomas Markus},
  year = {2020},
  month = jul,
  journal = {Academy of Management Proceedings},
  volume = {2020},
  number = {1},
  doi = {10.5465/AMBPP.2020.20992abstract},
  url = {https://doi.org/10.5465/AMBPP.2020.20992abstract},
  abstract = {Estate taxes on business inheritance are regularly the subject of controversial debates in business, politics and economics. However, a holistic understanding and systematic analysis of what shapes cross-national differences in estate taxes is missing. Using data from 54 countries, we present a comprehensive configurational analysis of socio-economic determinants of estate taxes. We reveal six distinct configurations of country-level entrepreneurial activity, business ownership, wealth inequality as well as cultural orientation towards individualism and the long term, which explain the presence of high or low estate taxes, and theorize around the institutional principles upon which societies draw to justify these estate taxes. Our analysis also highlights the importance of treating low and high estate taxes as separate outcomes since, for example, a country's entrepreneurial activity is less relevant than business ownership in configurations for high estate taxes, while the opposite is true for configurations for low estate taxes. Our study contributes a more nuanced understanding of the drivers of international variation in estate taxes and the particular role of entrepreneurs and business owners therein.},
  keywords = {Intergenerational Wealth,Wealth Taxation}
}

Estate taxes on business inheritance are regularly the subject of controversial debates in business, politics and economics. However, a holistic understanding and systematic analysis of what shapes cross-national differences in estate taxes is missing. Using data from 54 countries, we present a comprehensive configurational analysis of socio-economic determinants of estate taxes. We reveal six distinct configurations of country-level entrepreneurial activity, business ownership, wealth inequality as well as cultural orientation towards individualism and the long term, which explain the presence of high or low estate taxes, and theorize around the institutional principles upon which societies draw to justify these estate taxes. Our analysis also highlights the importance of treating low and high estate taxes as separate outcomes since, for example, a country's entrepreneurial activity is less relevant than business ownership in configurations for high estate taxes, while the opposite is true for configurations for low estate taxes. Our study contributes a more nuanced understanding of the drivers of international variation in estate taxes and the particular role of entrepreneurs and business owners therein.

@techreport{Nolanetal2020,
  type = {Stone {{Center Working Paper Series}}},
  title = {Intergenerational Transfers by Size and Wealth Inequality in Rich Countries},
  author = {Nolan, Brian and Palomino, Juan and Van Kerm, Philippe and Morelli, Salvatore},
  year = {2020},
  month = sep,
  number = {21},
  institution = {Stone Center on Socio-Economic Inequality},
  doi = {10.31235/osf.io/eyh8s},
  url = {https://doi.org/10.31235/osf.io/eyh8s},
  abstract = {This paper uses household wealth surveys to compare patterns of intergenerational wealth transfers across six rich countries and assess the relationships between transfers, current levels of net wealth, and wealth inequality. The paper examines four Euro Area countries, France, Germany, Italy, and Spain and extends the systematic comparison to the US and the UK. It finds that many of those currently at the top of the wealth distribution did not benefit from intergenerational transfers, but those who did received particularly large amounts while those toward the bottom of the wealth distribution received very little. A substantial gap in net wealth is seen between those who received or did not receive some wealth transfer. Controlling for age, gender, education and household size reduces the size of that gap but it remains substantial, especially in the US. We further look at how a marginal increase in the proportion of recipients of transfers of differing sizes would contribute to the shape of the overall wealth distribution using influence function regressions. Crucially, we show that the impact depends not only on the locations in the wealth distributions of recipients versus non-recipients, but also on the size of the receipt, an aspect which has been overlooked to date. In most countries, increasing the proportion of recipients of large transfers generally increases overall wealth inequality. In contrast, having more recipients of small or medium-sized transfers would be expected to reduce wealth inequality modestly, as they are more concentrated around the middle of the wealth distribution than non-recipients.},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

This paper uses household wealth surveys to compare patterns of intergenerational wealth transfers across six rich countries and assess the relationships between transfers, current levels of net wealth, and wealth inequality. The paper examines four Euro Area countries, France, Germany, Italy, and Spain and extends the systematic comparison to the US and the UK. It finds that many of those currently at the top of the wealth distribution did not benefit from intergenerational transfers, but those who did received particularly large amounts while those toward the bottom of the wealth distribution received very little. A substantial gap in net wealth is seen between those who received or did not receive some wealth transfer. Controlling for age, gender, education and household size reduces the size of that gap but it remains substantial, especially in the US. We further look at how a marginal increase in the proportion of recipients of transfers of differing sizes would contribute to the shape of the overall wealth distribution using influence function regressions. Crucially, we show that the impact depends not only on the locations in the wealth distributions of recipients versus non-recipients, but also on the size of the receipt, an aspect which has been overlooked to date. In most countries, increasing the proportion of recipients of large transfers generally increases overall wealth inequality. In contrast, having more recipients of small or medium-sized transfers would be expected to reduce wealth inequality modestly, as they are more concentrated around the middle of the wealth distribution than non-recipients.

@article{Ohlssonetal2020,
  title = {Inherited Wealth over the Path of Development: {{Sweden}}, 1810--2016},
  author = {Ohlsson, Henry and Roine, Jesper and Waldenstr{\"o}m, Daniel},
  year = {2020},
  month = jun,
  journal = {Journal of the European Economic Association},
  volume = {18},
  number = {3},
  pages = {1123--1157},
  doi = {10.1093/jeea/jvz038},
  url = {https://doi.org/10.1093/jeea/jvz038},
  abstract = {We estimate the importance of inherited wealth in Sweden over the past 200 years. Inheritance is measured both as the annual inheritance flow divided by national income and as the share of inherited wealth in all private wealth. In the 19th century, Sweden differs from France and the United Kingdom in having much lower inheritance--income flows, but at the same time exhibiting equally large shares of inherited wealth in total wealth. This pattern is in line with Sweden at the time being a poor country with low domestic capital accumulation, but at the same time exhibiting high economic growth rates. In the 20th century the importance of inheritance in relation to national income fell, but since the 1990s it has increased rapidly, today reaching almost the same levels as a century ago. The share of inherited wealth in total wealth has also fallen over time, but remains relatively low due to a rapid accumulation of new wealth. We study potential determinants and explanations, pointing especially to Swedish welfare-state institutions, and in particular to the development of an extensive public occupational pension system contributing to keeping private inheritance low.},
  keywords = {Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality}
}

We estimate the importance of inherited wealth in Sweden over the past 200 years. Inheritance is measured both as the annual inheritance flow divided by national income and as the share of inherited wealth in all private wealth. In the 19th century, Sweden differs from France and the United Kingdom in having much lower inheritance–income flows, but at the same time exhibiting equally large shares of inherited wealth in total wealth. This pattern is in line with Sweden at the time being a poor country with low domestic capital accumulation, but at the same time exhibiting high economic growth rates. In the 20th century the importance of inheritance in relation to national income fell, but since the 1990s it has increased rapidly, today reaching almost the same levels as a century ago. The share of inherited wealth in total wealth has also fallen over time, but remains relatively low due to a rapid accumulation of new wealth. We study potential determinants and explanations, pointing especially to Swedish welfare-state institutions, and in particular to the development of an extensive public occupational pension system contributing to keeping private inheritance low.

@book{Piketty2020,
  title = {Capital and Ideology},
  author = {PIketty, Thomas},
  translator = {Goldhammer, Arthur},
  year = {2020},
  publisher = {The Belknap Press of Harvard University Press},
  address = {Cambridge, MA},
  url = {http://piketty.pse.ens.fr/fr/ideology},
  urldate = {2022-03-16},
  isbn = {978-0-674-24507-5},
  keywords = {Cross-National Comparisons,Data Sources: Estate Inheritance and Gift Taxes,Determinants of Wealth and Wealth Inequality,Estate Inheritance and Gift Taxes,Impacts of Wealth Inequality,Intergenerational Wealth,Wealth Taxation}
}

@article{Bourdieuetal2019,
  title = {Intergenerational Wealth Mobility in France, 19th and 20th Century},
  author = {Bourdieu, J{\'e}r{\^o}me and Kesztenbaum, Lionel and {Postel-Vinay}, Gilles and {Suwa-Eisenmann}, Akiko},
  year = {2019},
  journal = {Review of Income and Wealth},
  volume = {65},
  number = {1},
  pages = {21--47},
  doi = {10.1111/roiw.12336},
  url = {https://doi.org/10.1111/roiw.12336},
  abstract = {This paper examines intergenerational wealth mobility between fathers and children in France between 1848 and 1960. Considering wealth mobility in the long run requires taking into account not only positional mobility (that is, how families move within a given distribution of wealth), but also structural mobility induced by changes in the distribution of wealth. Such changes are related to two structural phenomena: in the nineteenth century, the rising number of individuals leaving no estate at death and, after World War I, the decline in the number of the very rich who could live off their wealth. The paper studies the movements between these groups and estimates the intergenerational elasticity of wealth, taking into account the persistence at the bottom and at the top.},
  keywords = {Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality}
}

This paper examines intergenerational wealth mobility between fathers and children in France between 1848 and 1960. Considering wealth mobility in the long run requires taking into account not only positional mobility (that is, how families move within a given distribution of wealth), but also structural mobility induced by changes in the distribution of wealth. Such changes are related to two structural phenomena: in the nineteenth century, the rising number of individuals leaving no estate at death and, after World War I, the decline in the number of the very rich who could live off their wealth. The paper studies the movements between these groups and estimates the intergenerational elasticity of wealth, taking into account the persistence at the bottom and at the top.

@techreport{FeivesonSabelhaus2019,
  type = {Finance and {{Economics Discussion Series}}},
  title = {Lifecycle Patterns of Saving and Wealth Accumulation},
  author = {Feiveson, Laura and Sabelhaus, John},
  year = {2019},
  month = aug,
  number = {2019-010},
  institution = {Board of Governors of the Federal Reserve System},
  doi = {10.17016/FEDS.2019.010r1},
  url = {https://doi.org/10.17016/FEDS.2019.010r1},
  abstract = {Empirical analysis of U.S. income, saving and wealth dynamics is constrained by a lack of high-quality and comprehensive household-level panel data. This paper uses a pseudo-panel approach, tracking types of agents by birth cohort and across time through a series of cross-section snapshots synthesized with macro aggregates. The key micro source data is the Survey of Consumer Finances (SCF), which captures the top of the wealth distribution by sampling from administrative records. The SCF has the detailed balance sheet components, incomes, and interfamily transfers needed to use both sides of the intertemporal budget constraint and thus solve for saving and consumption. The wealth change decomposition by age and agent type provides a new set of benchmarks for heterogeneous agent macro models, reconciling observed anomalies about lifecycle saving behavior and emphasizing the importance of generally unmeasured incomes (interfamily transfers and capital gains) in wealth accumulation dynamics.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Empirical analysis of U.S. income, saving and wealth dynamics is constrained by a lack of high-quality and comprehensive household-level panel data. This paper uses a pseudo-panel approach, tracking types of agents by birth cohort and across time through a series of cross-section snapshots synthesized with macro aggregates. The key micro source data is the Survey of Consumer Finances (SCF), which captures the top of the wealth distribution by sampling from administrative records. The SCF has the detailed balance sheet components, incomes, and interfamily transfers needed to use both sides of the intertemporal budget constraint and thus solve for saving and consumption. The wealth change decomposition by age and agent type provides a new set of benchmarks for heterogeneous agent macro models, reconciling observed anomalies about lifecycle saving behavior and emphasizing the importance of generally unmeasured incomes (interfamily transfers and capital gains) in wealth accumulation dynamics.

@article{HansenWiborg2019,
  title = {The Accumulation and Transfers of Wealth: Variations by Social Class},
  author = {Hansen, Marianne Nordli and Wiborg, {\O}yvind Nicolay},
  year = {2019},
  month = dec,
  journal = {European Sociological Review},
  volume = {35},
  number = {6},
  pages = {874--893},
  doi = {10.1093/esr/jcz036},
  url = {https://doi.org/10.1093/esr/jcz036},
  abstract = {The purpose of our study is to investigate the role of wealth in broader stratification processes. Based on unique data from Norwegian tax registers, we address questions about the association between class origin, wealth transfers, and wealth accumulation among young adults. We show that is more common to receive transfers in the higher than in the lower social classes, and that those originating in the economic upper class, i.e. large proprietors, owners, of single enterprises as well as investors with diversified portfolios, and top managers and directors, are especially likely to receive transfers, as well as especially large inter vivos gifts. As young adults, those with upper-class origins, and especially origins in the economic upper class, accumulate more wealth than those with origins in classes lower in the social hierarchy. In all social classes, those who have received wealth transfers accumulate most wealth. We argue that transferring wealth indeed appears as robust and efficient mobility or reproduction strategy.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

The purpose of our study is to investigate the role of wealth in broader stratification processes. Based on unique data from Norwegian tax registers, we address questions about the association between class origin, wealth transfers, and wealth accumulation among young adults. We show that is more common to receive transfers in the higher than in the lower social classes, and that those originating in the economic upper class, i.e. large proprietors, owners, of single enterprises as well as investors with diversified portfolios, and top managers and directors, are especially likely to receive transfers, as well as especially large inter vivos gifts. As young adults, those with upper-class origins, and especially origins in the economic upper class, accumulate more wealth than those with origins in classes lower in the social hierarchy. In all social classes, those who have received wealth transfers accumulate most wealth. We argue that transferring wealth indeed appears as robust and efficient mobility or reproduction strategy.

@article{PfefferKillewald2019,
  title = {Intergenerational Wealth Mobility and Racial Inequality},
  author = {Pfeffer, Fabian T. and Killewald, Alexandra},
  year = {2019},
  journal = {Socius},
  volume = {5},
  pages = {1--2},
  doi = {10.1177/2378023119831799},
  url = {https://doi.org/10.1177/2378023119831799},
  abstract = {The black-white gap in household wealth is large and well documented. Here, we visualize how this racial wealth gap persists across generations. Animating the flow of individuals between the relative wealth position of parents and their adult children, we show that the disadvantage of black families is a consequence both of wealth inequality in prior generations and race differences in the transmission of wealth positions across generations: Black children both have less wealthy parents on average and are far more likely to be downwardly mobile in household wealth. By displaying intergenerational movements between parental and offspring wealth quintiles, we underline how intergenerational fluctuation coexists with the maintenance of a severely racialized wealth structure.},
  keywords = {Impacts of Wealth Inequality,Intergenerational Wealth}
}

The black-white gap in household wealth is large and well documented. Here, we visualize how this racial wealth gap persists across generations. Animating the flow of individuals between the relative wealth position of parents and their adult children, we show that the disadvantage of black families is a consequence both of wealth inequality in prior generations and race differences in the transmission of wealth positions across generations: Black children both have less wealthy parents on average and are far more likely to be downwardly mobile in household wealth. By displaying intergenerational movements between parental and offspring wealth quintiles, we underline how intergenerational fluctuation coexists with the maintenance of a severely racialized wealth structure.

@article{Adermonetal2018,
  title = {Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations},
  author = {Adermon, Adrian and Lindahl, Mikael and Waldenstr{\"o}m, Daniel},
  year = {2018},
  journal = {The Economic Journal},
  volume = {128},
  number = {612},
  pages = {F482--F513},
  doi = {10.1111/ecoj.12535},
  url = {https://doi.org/10.1111/ecoj.12535},
  abstract = {This study estimates intergenerational wealth correlations across up to four generations and examines the degree to which the wealth association between parents and children can be explained by inheritances. Using a Swedish data set with newly hand-collected data on wealth and bequests, we find parent-child rank correlations of 0.3--0.4 and grandparent--grandchild rank correlations of 0.1-- 0.2. Bequests and gifts appear to be central in this process, accounting for at least half of the parent-- child wealth correlation while earnings and education can account for only a quarter.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

This study estimates intergenerational wealth correlations across up to four generations and examines the degree to which the wealth association between parents and children can be explained by inheritances. Using a Swedish data set with newly hand-collected data on wealth and bequests, we find parent-child rank correlations of 0.3–0.4 and grandparent–grandchild rank correlations of 0.1– 0.2. Bequests and gifts appear to be central in this process, accounting for at least half of the parent– child wealth correlation while earnings and education can account for only a quarter.

@article{Atkinson2018,
  title = {Wealth and Inheritance in {{Britain}} from 1896 to the Present},
  author = {Atkinson, Anthony B.},
  year = {2018},
  journal = {The Journal of Economic Inequality},
  volume = {16},
  number = {2},
  pages = {137--169},
  doi = {10.1007/s10888-018-9382-1},
  url = {https://doi.org/10.1007/s10888-018-9382-1},
  abstract = {Personal wealth has grown since the 1970s twice as fast in real terms as national income. Has this rise in the wealth-income ratio led to a corresponding increase in the wealth being passed on from one generation to the next? Are we returning to the levels of inheritance found in the 19th century? The aim of this paper is to construct UK evidence on the extent of the transmission of wealth in the form of estates and gifts inter vivos. It takes a long-run view of inheritance, starting from 1896, when the modern Estate Duty was introduced, and exploits the extensive estate data published over the years. Construction of a long-run time series for more than a century is challenging, and there are important limitations. The resulting time-series demonstrates the major importance of inheritance in the UK before the First World War, when the total transmitted wealth represented some 20 per cent of net national income. In the inter-war period, the total was around 15 per cent, falling to some 10 per cent after the Second World War, and then falling further to below 5 per cent in the late 1970s. Since then, there has indeed been an upturn: a rise from 4.8 per cent in 1977 to 8.2 per cent in 2006. This increase was more or less in line with the increase in personal wealth, and has to be interpreted in the light of the changing net worth of the corporate and public sectors of the economy.},
  keywords = {Cross-National Comparisons,Intergenerational Wealth}
}

Personal wealth has grown since the 1970s twice as fast in real terms as national income. Has this rise in the wealth-income ratio led to a corresponding increase in the wealth being passed on from one generation to the next? Are we returning to the levels of inheritance found in the 19th century? The aim of this paper is to construct UK evidence on the extent of the transmission of wealth in the form of estates and gifts inter vivos. It takes a long-run view of inheritance, starting from 1896, when the modern Estate Duty was introduced, and exploits the extensive estate data published over the years. Construction of a long-run time series for more than a century is challenging, and there are important limitations. The resulting time-series demonstrates the major importance of inheritance in the UK before the First World War, when the total transmitted wealth represented some 20 per cent of net national income. In the inter-war period, the total was around 15 per cent, falling to some 10 per cent after the Second World War, and then falling further to below 5 per cent in the late 1970s. Since then, there has indeed been an upturn: a rise from 4.8 per cent in 1977 to 8.2 per cent in 2006. This increase was more or less in line with the increase in personal wealth, and has to be interpreted in the light of the changing net worth of the corporate and public sectors of the economy.

@article{Boserupetal2018,
  title = {Born with a Silver Spoon? {{Danish}} Evidence on Wealth Inequality in Childhood},
  author = {Boserup, Simon Halphen and Kopczuk, Wojciech and Kreiner, Claus Thustrup},
  year = {2018},
  journal = {The Economic Journal},
  volume = {128},
  number = {612},
  pages = {F514--F544},
  doi = {10.1111/ecoj.12496},
  url = {https://doi.org/10.1111/ecoj.12496},
  abstract = {We use Danish wealth records from three decades to characterise wealth inequality in childhood, where the main source of wealth is transfers. Wealth holdings are small in childhood but they have strong predictive power for future wealth in adulthood. At age 18, asset holdings of children are more informative than parental wealth in predicting wealth of children when they are in their 40s. We investigate why and rule out that childhood wealth in itself can accumulate enough to explain later wealth inequality. Instead, childhood wealth seems to proxy for intergenerational correlation in savings behaviour and additional transfers from parents.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Wealth Taxation}
}

We use Danish wealth records from three decades to characterise wealth inequality in childhood, where the main source of wealth is transfers. Wealth holdings are small in childhood but they have strong predictive power for future wealth in adulthood. At age 18, asset holdings of children are more informative than parental wealth in predicting wealth of children when they are in their 40s. We investigate why and rule out that childhood wealth in itself can accumulate enough to explain later wealth inequality. Instead, childhood wealth seems to proxy for intergenerational correlation in savings behaviour and additional transfers from parents.

@article{Brulhartetal2018,
  title = {Inheritance Flows in Switzerland, 1911--2011},
  author = {Br{\"u}lhart, Marius and Dupertuis, Didier and Moreau, Elodie},
  year = {2018},
  journal = {Swiss Journal of Economics and Statistics},
  volume = {154},
  number = {1},
  pages = {1--13},
  doi = {10.1186/s41937-017-0012-9},
  url = {https://doi.org/10.1186/s41937-017-0012-9},
  abstract = {We estimate the size of inheritance flows in Switzerland over a long span of data, in close analogy to the study for France by Piketty (Q J Econ 126(3):1071--1131, 2011). We find that inheritance flows had been growing more slowly than national income up until the 1970s, but have been outpacing income growth since. According to our central estimates, the annual flow of inheritance amounted to 13.2\% of national income in 2011. The share of total wealth that is attributable to inheritance has remained relatively stable over time, fluctuating between 45 and 60\%.},
  keywords = {Intergenerational Wealth}
}

We estimate the size of inheritance flows in Switzerland over a long span of data, in close analogy to the study for France by Piketty (Q J Econ 126(3):1071–1131, 2011). We find that inheritance flows had been growing more slowly than national income up until the 1970s, but have been outpacing income growth since. According to our central estimates, the annual flow of inheritance amounted to 13.2% of national income in 2011. The share of total wealth that is attributable to inheritance has remained relatively stable over time, fluctuating between 45 and 60%.

@techreport{CannariDAlessio2018a,
  type = {Occasional {{Papers}}},
  title = {Education, Income and Wealth: Persistence across Generations in {{Italy}}},
  author = {Cannari, Luigi and D'Alessio, Giovanni},
  year = {2018},
  month = dec,
  number = {476},
  institution = {Bank of Italy},
  url = {https://www.bancaditalia.it/pubblicazioni/qef/2018-0476/index.html?com.dotmarketing.htmlpage.language=1},
  urldate = {2024-05-28},
  abstract = {The paper examines the intergenerational persistence of economic conditions in terms of education, income and wealth, and the importance of starting conditions in explaining success in Italy. The intergenerational persistence of economic conditions turns out to be relatively high by international standards; in recent years this phenomenon has displayed an upward trend. Variables that are not controlled by individuals explain their economic success to a greater extent than in the past.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

The paper examines the intergenerational persistence of economic conditions in terms of education, income and wealth, and the importance of starting conditions in explaining success in Italy. The intergenerational persistence of economic conditions turns out to be relatively high by international standards; in recent years this phenomenon has displayed an upward trend. Variables that are not controlled by individuals explain their economic success to a greater extent than in the past.

@article{Elinderetal2018,
  title = {Inheritance and Wealth Inequality: Evidence from Population Registers},
  author = {Elinder, Mikael and Erixson, Oscar and Waldenstr{\"o}m, Daniel},
  year = {2018},
  journal = {Journal of Public Economics},
  volume = {165},
  pages = {17--30},
  doi = {10.1016/J.JPUBECO.2018.06.012},
  url = {https://doi.org/10.1016/j.jpubeco.2018.06.012},
  abstract = {This paper uses population register data on inheritances and wealth in Sweden to estimate the causal impact of inheritances on wealth inequality. We find that inheritances reduce wealth inequality, as measured by the Gini coefficient or top wealth shares, but that they increase absolute dispersion. This duality in effects stems from the fact that even though richer heirs inherit larger amounts, the relative importance of the inheritance is larger for less wealthy heirs, who inherit more relative to their pre-inheritance wealth. This is in part driven by the fact that heirs do not inherit debts, which makes the distribution of inheritances more equal than the distribution of wealth among the heirs. Behavioral adjustments seem to mitigate the equalizing effect of inheritances, possibly through higher consumption among the poorer heirs. Inheritance taxation counteracts the equalizing inheritance effect, but redistribution of inheritance tax revenues can reverse this result and make the inheritance tax equalizing. Finally, we also find that inheritances increase intragenerational wealth mobility, but the effect is short-lived.},
  keywords = {Impacts of Wealth Inequality,Intergenerational Wealth,Methods of Estimation of Wealth Inequality,Wealth Taxation}
}

This paper uses population register data on inheritances and wealth in Sweden to estimate the causal impact of inheritances on wealth inequality. We find that inheritances reduce wealth inequality, as measured by the Gini coefficient or top wealth shares, but that they increase absolute dispersion. This duality in effects stems from the fact that even though richer heirs inherit larger amounts, the relative importance of the inheritance is larger for less wealthy heirs, who inherit more relative to their pre-inheritance wealth. This is in part driven by the fact that heirs do not inherit debts, which makes the distribution of inheritances more equal than the distribution of wealth among the heirs. Behavioral adjustments seem to mitigate the equalizing effect of inheritances, possibly through higher consumption among the poorer heirs. Inheritance taxation counteracts the equalizing inheritance effect, but redistribution of inheritance tax revenues can reverse this result and make the inheritance tax equalizing. Finally, we also find that inheritances increase intragenerational wealth mobility, but the effect is short-lived.

@techreport{FeivesonSabelhaus2018,
  type = {{{FEDS Notes}}},
  title = {How Does Intergenerational Wealth Transmission Affect Wealth Concentration?},
  author = {Feiveson, Laura and Sabelhaus, John},
  year = {2018},
  month = jun,
  institution = {Board of Governors of the Federal Reserve System},
  doi = {10.17016/2380-7172.2209},
  url = {https://doi.org/10.17016/2380-7172.2209},
  abstract = {Wealth concentration is high and rising in the US, reigniting an old debate within economics about the role that intergenerational wealth transmission plays in understanding savings and wealth accumulation.1 One view is that observed wealth holdings at any point in time are almost entirely attributable to lifetime saving that is unconnected to family wealth or support, which implies that intergenerational wealth transmission is probably not particularly important for explaining wealth concentration. An alternative view is that wealthy dynastic families hold a substantial share of aggregate wealth that is systematically passed from old to young, either through direct transfers in the form of inheritances and financial gifts, or more indirect channels such as the provision of education or other opportunities that lead to future wealth accumulation.2 In this note, we seek to establish the role of intergenerational wealth transmission by using the Federal Reserve Board's Survey of Consumer Finances (SCF), which contains extensive information about household balance sheets, intergenerational transfers made and received, and demographic and socioeconomic characteristics of respondents},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Wealth concentration is high and rising in the US, reigniting an old debate within economics about the role that intergenerational wealth transmission plays in understanding savings and wealth accumulation.1 One view is that observed wealth holdings at any point in time are almost entirely attributable to lifetime saving that is unconnected to family wealth or support, which implies that intergenerational wealth transmission is probably not particularly important for explaining wealth concentration. An alternative view is that wealthy dynastic families hold a substantial share of aggregate wealth that is systematically passed from old to young, either through direct transfers in the form of inheritances and financial gifts, or more indirect channels such as the provision of education or other opportunities that lead to future wealth accumulation.2 In this note, we seek to establish the role of intergenerational wealth transmission by using the Federal Reserve Board's Survey of Consumer Finances (SCF), which contains extensive information about household balance sheets, intergenerational transfers made and received, and demographic and socioeconomic characteristics of respondents

@article{Korom2018,
  title = {Inherited Advantage: Comparing Households That Receive Gifts and Bequests with Non-Receiving Households across the Distribution of Household Wealth in 11 {{European}} Countries},
  author = {Korom, Philipp},
  year = {2018},
  month = feb,
  journal = {European Sociological Review},
  volume = {34},
  number = {1},
  pages = {79--91},
  doi = {10.1093/esr/jcx084},
  url = {https://doi.org/10.1093/esr/jcx084},
  abstract = {This study examines the importance of gifts and bequests ('wealth transfers') across the distribution of household wealth. Unconditional quantile regression applied to harmonized survey data obtained from 11 European countries reveals that households that receive gifts and bequests own considerably more wealth than non-receiving households, all other things being equal. The wealth gap varies hugely along the distribution of net wealth. At the median, the wealth gap reaches about 119,000 euros and increases to 630,000 euros at the 90th percentile. With regard to the 99th percentile, survey data even indicate differences in wealth levels greater than 2.3 million euros. Further analysis finds evidence that the impact of wealth transfers on household wealth follows an inverted U-shaped pattern: gifts and bequests contribute the most to the stock of private wealth in the broad mid-section and less so at the lower and upper ends of the distribution. Overall, the study provides evidence for a strong nexus between inheritance and household wealth that is not limited to the top.},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

This study examines the importance of gifts and bequests ('wealth transfers') across the distribution of household wealth. Unconditional quantile regression applied to harmonized survey data obtained from 11 European countries reveals that households that receive gifts and bequests own considerably more wealth than non-receiving households, all other things being equal. The wealth gap varies hugely along the distribution of net wealth. At the median, the wealth gap reaches about 119,000 euros and increases to 630,000 euros at the 90th percentile. With regard to the 99th percentile, survey data even indicate differences in wealth levels greater than 2.3 million euros. Further analysis finds evidence that the impact of wealth transfers on household wealth follows an inverted U-shaped pattern: gifts and bequests contribute the most to the stock of private wealth in the broad mid-section and less so at the lower and upper ends of the distribution. Overall, the study provides evidence for a strong nexus between inheritance and household wealth that is not limited to the top.

@article{PfefferKillewald2018,
  title = {Generations of Advantage. Multigenerational Correlations in Family Wealth},
  author = {Pfeffer, Fabian T. and Killewald, Alexandra},
  year = {2018},
  journal = {Social Forces},
  volume = {96},
  number = {4},
  pages = {1411--1442},
  doi = {10.1093/sf/sox086},
  url = {https://fabianpfeffer.com/research/wealth-and-opportunity/},
  abstract = {Inequality in family wealth is high, yet we know little about how much and how wealth inequality is maintained across generations. We argue that a long-term perspective reflective of wealth's cumulative nature is crucial to understand the extent and channels of wealth reproduction across generations. Using data from the Panel Study of Income Dynamics that span nearly half a century, we show that a one-decile increase in parents' wealth position is associated with an increase of about four percentiles in their offspring's wealth position in adulthood. We show that grandparental wealth is a unique predictor of grandchildren's wealth, above and beyond the role of parental wealth, suggesting that a focus on only parent-child dyads understates the importance of family wealth lineages. Second, considering five channels of wealth transmission---gifts and bequests, education, marriage, homeownership, and business ownership---we find that most of the advantages arising from family wealth begin much earlier in the life course than the common focus on bequests implies, even when we consider the wealth of grandparents. We also document the stark disadvantage of African American households in terms of not only their wealth attainment but also their intergenerational wealth mobility compared to whites.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Inequality in family wealth is high, yet we know little about how much and how wealth inequality is maintained across generations. We argue that a long-term perspective reflective of wealth's cumulative nature is crucial to understand the extent and channels of wealth reproduction across generations. Using data from the Panel Study of Income Dynamics that span nearly half a century, we show that a one-decile increase in parents' wealth position is associated with an increase of about four percentiles in their offspring's wealth position in adulthood. We show that grandparental wealth is a unique predictor of grandchildren's wealth, above and beyond the role of parental wealth, suggesting that a focus on only parent-child dyads understates the importance of family wealth lineages. Second, considering five channels of wealth transmission—gifts and bequests, education, marriage, homeownership, and business ownership—we find that most of the advantages arising from family wealth begin much earlier in the life course than the common focus on bequests implies, even when we consider the wealth of grandparents. We also document the stark disadvantage of African American households in terms of not only their wealth attainment but also their intergenerational wealth mobility compared to whites.

@article{Alvaredoetal2017,
  title = {On the Share of Inheritance in Aggregate Wealth: {{Europe}} and the {{USA}}, 1900--2010},
  author = {Alvaredo, Facundo and Garbinti, Bertrand and Piketty, Thomas},
  year = {2017},
  journal = {Economica},
  volume = {84},
  number = {334},
  pages = {239--260},
  doi = {10.1111/ecca.12233},
  url = {http://doi.wiley.com/10.1111/ecca.12233},
  abstract = {This paper provides historical series on the evolution of the share of inherited wealth in aggregate private wealth in Europe (France, the UK, Germany, Sweden) and the USA over the 1900--2010 period. Until 1910, the inheritance share was very high in Europe (70--80\%). It then fell abruptly following the 1914--45 shocks, down to about 30--40\% during the 1950--80 period, and is back to 50--60\% (and rising) since around 2010. The US pattern also appears to be U-shaped, albeit less marked, and with significant uncertainty regarding recent trends, due to data limitations. We discuss possible interpretations for these long-run patterns.},
  keywords = {Cross-National Comparisons,Intergenerational Wealth}
}

This paper provides historical series on the evolution of the share of inherited wealth in aggregate private wealth in Europe (France, the UK, Germany, Sweden) and the USA over the 1900–2010 period. Until 1910, the inheritance share was very high in Europe (70–80%). It then fell abruptly following the 1914–45 shocks, down to about 30–40% during the 1950–80 period, and is back to 50–60% (and rising) since around 2010. The US pattern also appears to be U-shaped, albeit less marked, and with significant uncertainty regarding recent trends, due to data limitations. We discuss possible interpretations for these long-run patterns.

@article{Bonkeetal2017,
  title = {How Inheritances Shape Wealth Distributions: {{An}} International Comparison},
  author = {B{\"o}nke, Timm and Werder, Marten V. and Westermeier, Christian},
  year = {2017},
  month = oct,
  journal = {Economics Letters},
  volume = {159},
  pages = {217--220},
  doi = {10.1016/j.econlet.2017.08.007},
  url = {https://doi.org/10.1016/j.econlet.2017.08.007},
  abstract = {We use data from the European Household Finance and Consumption Survey in order to examine the distributional effect of intergenerational wealth transfers on the net worth distribution in 8 European countries and compare it to recent findings for the US. To do so, we resort to the decomposition of the coefficient of variation as suggested and applied by Wolff (1987, 2002, 2015) and Wolff and Gittleman (2014). The results seem to imply that inheritances and gifts have a vastly equalizing effect on inequality in household wealth in all 8 countries.},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

We use data from the European Household Finance and Consumption Survey in order to examine the distributional effect of intergenerational wealth transfers on the net worth distribution in 8 European countries and compare it to recent findings for the US. To do so, we resort to the decomposition of the coefficient of variation as suggested and applied by Wolff (1987, 2002, 2015) and Wolff and Gittleman (2014). The results seem to imply that inheritances and gifts have a vastly equalizing effect on inequality in household wealth in all 8 countries.

@incollection{Cowelletal2017,
  title = {Wealth, Top Incomes and Inequality},
  booktitle = {National Wealth: What Is Missing, Why It Matters},
  author = {Cowell, Frank and Nolan, Brian and Olivera, Javier and Van Kerm, Philippe},
  editor = {Hepburn, Cameron and Hamilton, Kirk},
  year = {2017},
  pages = {175--204},
  publisher = {Oxford University Press},
  url = {https://www.oxfordscholarship.com/view/10.1093/oso/9780198803720.001.0001/oso-9780198803720},
  abstract = {Although it is heartening to see wealth inequality being taken seriously, key concepts are often muddled, including the distinction between income and wealth, what is included in "wealth", and facts about wealth distributions. This chapter highlights issues that arise in making ideas and facts about wealth inequality precise, and employs newly-available data to take a fresh look at wealth and wealth inequality in a comparative perspective. The composition of wealth is similar across countries, with housing wealth being the key asset. Wealth is considerably more unequally distributed than income, and it is distinctively so in the United States. Extending definitions to include pension wealth however reduces inequality substantially. Analysis also sheds light on life-cycle patterns and the role of inheritance. Discussion of the joint distributions of income and wealth suggests that interactions between increasing top income shares and the concentration of wealth and income from wealth towards the top is critical.},
  chapter = {Ch. 8},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Methods of Estimation of Wealth Inequality}
}

Although it is heartening to see wealth inequality being taken seriously, key concepts are often muddled, including the distinction between income and wealth, what is included in "wealth", and facts about wealth distributions. This chapter highlights issues that arise in making ideas and facts about wealth inequality precise, and employs newly-available data to take a fresh look at wealth and wealth inequality in a comparative perspective. The composition of wealth is similar across countries, with housing wealth being the key asset. Wealth is considerably more unequally distributed than income, and it is distinctively so in the United States. Extending definitions to include pension wealth however reduces inequality substantially. Analysis also sheds light on life-cycle patterns and the role of inheritance. Discussion of the joint distributions of income and wealth suggests that interactions between increasing top income shares and the concentration of wealth and income from wealth towards the top is critical.

@techreport{Humeretal2017,
  type = {{{ICAE Working Paper Series}}},
  title = {Inheritances and the Accumulation of Wealth in the {{Eurozone}}},
  author = {Humer, Stefan and Moser, Mathias and Schnetzer, Matthias},
  year = {2017},
  number = {73},
  institution = {Institute for Comprehensive Analysis of the Economy},
  url = {https://hdl.handle.net/10419/179436},
  abstract = {This paper empirically compares the contribution of the two major wealth accumulation factors - earned income and inheritances - to the within country net wealth position of Eurozone households with HFCS data. Using unconditional quantile regressions, we show the varying importance of earned income and inheritances at different parts of the per country distributions and compare them to Eurozone averages. The elasticities of both wealth sources are overly non-linear and display an inverted "U" shape pattern. Around the median household, an additional percentile in the income distribution corresponds to an increase in the net wealth distribution of as much as 0:5 percentiles, while an additional percentile in the inheritance distribution yields up to 1:3 percentiles. At the bottom of the wealth distribution, households have to climb less than two percentiles in the income distribution to compensate a one percentile increase in the inheritance distribution, whereas this ratio surges to almost four percentiles at the top tail and varies distinctively between different countries. These results emphasize the relative importance of inheritances versus income from employment for private wealth creation and question common perceptions of meritocracy.},
  keywords = {Cross-National Comparisons,Intergenerational Wealth,Wealth Taxation}
}

This paper empirically compares the contribution of the two major wealth accumulation factors - earned income and inheritances - to the within country net wealth position of Eurozone households with HFCS data. Using unconditional quantile regressions, we show the varying importance of earned income and inheritances at different parts of the per country distributions and compare them to Eurozone averages. The elasticities of both wealth sources are overly non-linear and display an inverted "U" shape pattern. Around the median household, an additional percentile in the income distribution corresponds to an increase in the net wealth distribution of as much as 0:5 percentiles, while an additional percentile in the inheritance distribution yields up to 1:3 percentiles. At the bottom of the wealth distribution, households have to climb less than two percentiles in the income distribution to compensate a one percentile increase in the inheritance distribution, whereas this ratio surges to almost four percentiles at the top tail and varies distinctively between different countries. These results emphasize the relative importance of inheritances versus income from employment for private wealth creation and question common perceptions of meritocracy.

@article{HallstenPfeffer2017,
  title = {Grand Advantage: Family Wealth and Grandchildren's Educational Achievement in {{Sweden}}},
  author = {H{\"a}llsten, Martin and Pfeffer, Fabian T.},
  year = {2017},
  month = apr,
  journal = {American Sociological Review},
  volume = {82},
  number = {2},
  pages = {328--360},
  doi = {10.1177/0003122417695791},
  url = {https://doi.org/10.1177/0003122417695791},
  abstract = {We study the role of family wealth for children's educational achievement using novel Swedish register data. In particular, we focus on the relationship between grandparents' wealth and their grandchildren's educational achievement. Doing so allows us to reliably establish the independent role of wealth in contributing to long-term inequalities in opportunity. We use regression models with extensive controls to account for observed socioeconomic characteristics of families, cousin fixed effects to net out potentially unobserved grandparent effects, and marginal structural models to account for endogenous selection. We find substantial associations between grandparents' wealth and their grandchildren's grade point averages (GPA) in the 9th grade that are only partly mediated by parents' socioeconomic characteristics and wealth. Our findings indicate that family wealth inequality---even in a comparatively egalitarian context like Sweden---has profound consequences for the distribution of opportunity across multiple generations. We posit that our estimates of the long-term consequences of wealth inequality may be conservative for nations other than Sweden, like the United States, where family wealth---in addition to its insurance and normative functions---allows the direct purchase of educational quality and access.},
  keywords = {Impacts of Wealth Inequality,Intergenerational Wealth}
}

We study the role of family wealth for children's educational achievement using novel Swedish register data. In particular, we focus on the relationship between grandparents' wealth and their grandchildren's educational achievement. Doing so allows us to reliably establish the independent role of wealth in contributing to long-term inequalities in opportunity. We use regression models with extensive controls to account for observed socioeconomic characteristics of families, cousin fixed effects to net out potentially unobserved grandparent effects, and marginal structural models to account for endogenous selection. We find substantial associations between grandparents' wealth and their grandchildren's grade point averages (GPA) in the 9th grade that are only partly mediated by parents' socioeconomic characteristics and wealth. Our findings indicate that family wealth inequality—even in a comparatively egalitarian context like Sweden—has profound consequences for the distribution of opportunity across multiple generations. We posit that our estimates of the long-term consequences of wealth inequality may be conservative for nations other than Sweden, like the United States, where family wealth—in addition to its insurance and normative functions—allows the direct purchase of educational quality and access.

@article{Karagiannaki2017,
  title = {The Impact of Inheritance on the Distribution of Wealth: Evidence from Great Britain},
  author = {Karagiannaki, Eleni},
  year = {2017},
  journal = {Review of Income and Wealth},
  volume = {63},
  number = {2},
  pages = {394--408},
  doi = {10.1111/roiw.12217},
  url = {http://doi.wiley.com/10.1111/roiw.12217},
  abstract = {Using the British Household Panel Survey, we investigate the role of inheritance in shaping the distribution of household wealth in Great Britain during 1995--2005a period characterized by a substantial increase in wealth and an equally important decrease in wealth inequality. Abstracting from behavioral effects, we find that inheritances received during this period accounted for 30 percent of the increase in wealth of inheritors. Regression estimates of the effect of inheritance on wealth accumulation suggest that households spend 30 percent of their inheritances on average, and that there is substantial heterogeneity in household responses. Households that accumulated more wealth saved a larger share of their inheritances, as did middle aged households and those with lower initial wealth. Although inheritances are highly unequal they had a small impact on overall wealth inequality. This mainly reflected the fact that their size relative to other sources of wealth was very small.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Using the British Household Panel Survey, we investigate the role of inheritance in shaping the distribution of household wealth in Great Britain during 1995–2005a period characterized by a substantial increase in wealth and an equally important decrease in wealth inequality. Abstracting from behavioral effects, we find that inheritances received during this period accounted for 30 percent of the increase in wealth of inheritors. Regression estimates of the effect of inheritance on wealth accumulation suggest that households spend 30 percent of their inheritances on average, and that there is substantial heterogeneity in household responses. Households that accumulated more wealth saved a larger share of their inheritances, as did middle aged households and those with lower initial wealth. Although inheritances are highly unequal they had a small impact on overall wealth inequality. This mainly reflected the fact that their size relative to other sources of wealth was very small.

@article{Boserupetal2016,
  title = {The Role of Bequests in Shaping Wealth Inequality: Evidence from {{Danish}} Wealth Records},
  author = {Boserup, Simon H. and Kopczuk, Wojciech and Kreiner, Claus T.},
  year = {2016},
  journal = {American Economic Review: Papers \& Proceedings},
  volume = {106},
  number = {5},
  pages = {656--661},
  doi = {10.1257/aer.p20161036},
  url = {https://doi.org/10.1257/aer.p20161036},
  abstract = {Using Danish administrative data, we estimate the impact of bequests on the level and inequality of wealth. We compare the distributions of wealth over time of people whose parent died and those whose parent did not. Bequests account for 26 percent of the average post-bequest wealth 1-3 years after parental death and significantly affect wealth throughout the distribution. Bequests increase absolute wealth inequality (variance of the distribution censored at the top/bottom 1\% increases by 33 percent), but reduce relative inequality (the top 1\% share declines by 6 percentage points from the base of 31 percent).},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality}
}

Using Danish administrative data, we estimate the impact of bequests on the level and inequality of wealth. We compare the distributions of wealth over time of people whose parent died and those whose parent did not. Bequests account for 26 percent of the average post-bequest wealth 1-3 years after parental death and significantly affect wealth throughout the distribution. Bequests increase absolute wealth inequality (variance of the distribution censored at the top/bottom 1% increases by 33 percent), but reduce relative inequality (the top 1% share declines by 6 percentage points from the base of 31 percent).

@article{CrawfordHood2016,
  title = {Lifetime Receipt of Inheritances and the Distribution of Wealth in {{England}}},
  author = {Crawford, Rowena and Hood, Andrew},
  year = {2016},
  month = mar,
  journal = {Fiscal Studies},
  volume = {37},
  number = {1},
  pages = {55--75},
  doi = {10.1111/j.1475-5890.2016.12087},
  url = {https://doi.org/10.1111/j.1475-5890.2016.12087},
  abstract = {We investigate the impact of inheritances and gifts received on the distribution of wealth. Whereas previous work has looked only at marketable wealth, we consider broader measures of wealth including state and private pensions. We find that once pension wealth is included, inheritances and gifts no longer have an equalising impact on the distribution of wealth. Without pension wealth, including wealth transfers reduces the Gini coefficient for wealth from 0.57 to 0.52. With pension wealth, the impact is negligible. We argue that this latter effect gives a better indication of the impact of inheritances on the distribution of lifetime income.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

We investigate the impact of inheritances and gifts received on the distribution of wealth. Whereas previous work has looked only at marketable wealth, we consider broader measures of wealth including state and private pensions. We find that once pension wealth is included, inheritances and gifts no longer have an equalising impact on the distribution of wealth. Without pension wealth, including wealth transfers reduces the Gini coefficient for wealth from 0.57 to 0.52. With pension wealth, the impact is negligible. We argue that this latter effect gives a better indication of the impact of inheritances on the distribution of lifetime income.

@article{Fox2016,
  title = {Parental Wealth and the Black-White Mobility Gap in the {{U}}.{{S}}.},
  author = {Fox, Liana E.},
  year = {2016},
  journal = {Review of Income and Wealth},
  volume = {62},
  number = {4},
  pages = {706--723},
  publisher = {John Wiley \& Sons, Ltd (10.1111)},
  doi = {10.1111/roiw.12200},
  url = {http://doi.wiley.com/10.1111/roiw.12200},
  abstract = {Utilizing longitudinal data from the Panel Study of Income Dynamics (PSID), this paper examines the relationship between parental wealth and intergenerational income mobility for black and white families. I find that total parental wealth is positively associated with upward mobility for low-income white families, but is not associated with reduced likelihood of downward mobility for white families from the top half of the income distribution. Conversely, I find that total parental wealth does not have the same positive association for low-income black families, while home ownership may have negative associations with the likelihood of upward mobility for these families. However, for black families from the top half of the income distribution, home equity is associated with a decreased likelihood of downward mobility, suggesting a heterogeneous relationship between home ownership and mobility for black families.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Utilizing longitudinal data from the Panel Study of Income Dynamics (PSID), this paper examines the relationship between parental wealth and intergenerational income mobility for black and white families. I find that total parental wealth is positively associated with upward mobility for low-income white families, but is not associated with reduced likelihood of downward mobility for white families from the top half of the income distribution. Conversely, I find that total parental wealth does not have the same positive association for low-income black families, while home ownership may have negative associations with the likelihood of upward mobility for these families. However, for black families from the top half of the income distribution, home equity is associated with a decreased likelihood of downward mobility, suggesting a heterogeneous relationship between home ownership and mobility for black families.

@article{Leitner2016,
  title = {Drivers of Wealth Inequality in Euro Area Countries: The Effect of Inheritance and Gifts on Household Gross and Net Wealth Distribution Analysed by Applying the Shapley Value Approach to Decomposition},
  author = {Leitner, Sebastian},
  year = {2016},
  journal = {European Journal of Economics and Economic Policies: Intervention},
  volume = {13},
  number = {1},
  pages = {114--136},
  publisher = {Edward Elgar Publishing},
  url = {https://doi.org/10.4337/ejeep.2016.01.10},
  abstract = {This paper investigates the sources of inequality in household gross and net wealth across eight euro area countries applying the Shapley value approach to decomposition. The research draws on micro data from the Eurosystem Household Finance and Consumption Survey 2010. Dispersion in bequests and inter vivos transfers obtained by households are found to have a remarkable effect on wealth inequality that is stronger than that of income differences. In Austria, Germany and Cyprus the contribution of real and financial assets inherited or received as gifts to gross and net wealth inequality attains about 40 per cent. Nevertheless, the distribution of household characteristics (age, education, size, number of adults and children in the household, marital status) within countries also shapes the observed wealth dispersion.},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Impacts of Wealth Inequality,Intergenerational Wealth,Methods of Estimation of Wealth Inequality}
}

This paper investigates the sources of inequality in household gross and net wealth across eight euro area countries applying the Shapley value approach to decomposition. The research draws on micro data from the Eurosystem Household Finance and Consumption Survey 2010. Dispersion in bequests and inter vivos transfers obtained by households are found to have a remarkable effect on wealth inequality that is stronger than that of income differences. In Austria, Germany and Cyprus the contribution of real and financial assets inherited or received as gifts to gross and net wealth inequality attains about 40 per cent. Nevertheless, the distribution of household characteristics (age, education, size, number of adults and children in the household, marital status) within countries also shapes the observed wealth dispersion.

@incollection{PfefferKillewald2016,
  title = {Intergenerational Correlations in Wealth},
  booktitle = {Economic Mobility: Research and Ideas on Strengthening Families, Communities, and the Economy.},
  author = {Pfeffer, Fabian T. and Killewald, Alexandra},
  editor = {{Federal Reserve Bank of St. Louis and the} and {Board of Governors of the Federal Reserve System}},
  year = {2016},
  pages = {176--201},
  publisher = {Federal Reserve System},
  address = {Washington, D.C.},
  url = {https://www.stlouisfed.org/community-development/publications/economic-mobility},
  abstract = {Our analyses substantially improve and expand the few prior estimates of intergenerational correlations in wealth. Existing evidence on intergenerational rigidity in the U.S. wealth distribution comes from a small number of studies, which, like ours, use data from the Panel Study of Income Dynamics (PSID) but, unlike ours, were only able to examine the wealth outcomes of younger adults (Charles and Hurst 2003; Conley and Glauber 2008; Mulligan 1997). This limitation was imposed by data restrictions at the time of analysis and already acknowledged in that research, suggesting that it would be more appropriate to measure wealth at later ages when adults have had more time to accumulate assets (Charles and Hurst 2003, fn.5; Conley and Glauber 2008, p. 10). We hypothesize that adults' wealth will more closely resemble that of their parents as both generations enter middle and late adulthood, aging out of the period of intensive investments in young adulthood and increasingly accumulating assets. Drawing on newly available data from the PSID, we update estimates of intergenerational wealth correlations and test whether intergenerational wealth transmission indeed strengthens from early through late adulthood. Additionally, we examine the contours of the intergenerational reproduction of wealth. We hypothesize that wealth positions at the top and bottom of the distribution may be particularly sticky, with very wealthy parents able to secure a substantial wealth advantage for their children, and parents without assets especially likely to have adult children who also fail to accumulate any wealth. When the intergenerational transmission of wealth is measured with a single parameter, such as an intergenerational elasticity, this variability is lost. Evaluating the persistence of the highest levels of wealth across generations also speaks to concerns about a wealthy elite that wields dynastic financial power. Together, our analyses offer a rich description of the intergenerational persistence of wealth across generations, how these patterns differ across the wealth distribution, and to what extent education and inheritance can account for these intergenerational associations. Our analyses mitigate the great imbalance of a large literature focused on the description of intergenerational correlations in other dimensions of socioeconomic standing, mostly occupational classes or income.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Our analyses substantially improve and expand the few prior estimates of intergenerational correlations in wealth. Existing evidence on intergenerational rigidity in the U.S. wealth distribution comes from a small number of studies, which, like ours, use data from the Panel Study of Income Dynamics (PSID) but, unlike ours, were only able to examine the wealth outcomes of younger adults (Charles and Hurst 2003; Conley and Glauber 2008; Mulligan 1997). This limitation was imposed by data restrictions at the time of analysis and already acknowledged in that research, suggesting that it would be more appropriate to measure wealth at later ages when adults have had more time to accumulate assets (Charles and Hurst 2003, fn.5; Conley and Glauber 2008, p. 10). We hypothesize that adults' wealth will more closely resemble that of their parents as both generations enter middle and late adulthood, aging out of the period of intensive investments in young adulthood and increasingly accumulating assets. Drawing on newly available data from the PSID, we update estimates of intergenerational wealth correlations and test whether intergenerational wealth transmission indeed strengthens from early through late adulthood. Additionally, we examine the contours of the intergenerational reproduction of wealth. We hypothesize that wealth positions at the top and bottom of the distribution may be particularly sticky, with very wealthy parents able to secure a substantial wealth advantage for their children, and parents without assets especially likely to have adult children who also fail to accumulate any wealth. When the intergenerational transmission of wealth is measured with a single parameter, such as an intergenerational elasticity, this variability is lost. Evaluating the persistence of the highest levels of wealth across generations also speaks to concerns about a wealthy elite that wields dynastic financial power. Together, our analyses offer a rich description of the intergenerational persistence of wealth across generations, how these patterns differ across the wealth distribution, and to what extent education and inheritance can account for these intergenerational associations. Our analyses mitigate the great imbalance of a large literature focused on the description of intergenerational correlations in other dimensions of socioeconomic standing, mostly occupational classes or income.

@unpublished{Pfefferetal2016a,
  title = {The Concentration of Wealth within Family Lineages and Intergenerational Transfers},
  author = {Pfeffer, Fabian T. and Killewald, Alexandra and Siliunas, Andreja},
  year = {2016},
  url = {https://psidonline.isr.umich.edu/Publications/Workshops/IntergenTransfers/Papers.aspx},
  urldate = {2024-05-29},
  abstract = {Compared to income and earnings, wealth in the United States is substantially more unequally distributed (Budr{\'i}a Rodr{\'i}guez et al. 2002; Scholz and Levine 2004). Access to wealth is in turn associated with a wide range of outcomes, including longevity, family formation, and the educational achievement and labor market outcomes of offspring (Attanasio and Emmerson 2003; Charles, Hurst, and Killewald 2013; Conley 1999, 2001; Pfeffer 2011; Bond Huie et al. 2003; Orr 2003; Schneider 2011). Furthermore, these associations are not fully explained by standard measures of socioeconomic advantage, such as income or education. The wealth distribution is thus an important measure of the concentration of social inequality and advantage. Unlike education and income, wealth can also be directly passed down to subsequent generations through bequests or inter vivos transfers. We analyze the role of these transfers in contributing to the concentration of wealth within family lineages. To measure the intergenerational persistence of family wealth, we use sibling correlations that capture the total variance in wealth shared by offspring from the same family. These correlations provide an overall measure of inequality in the opportunity to attain wealth -- tied to a variety of factors, including not only specific parental characteristics (such as mother's education, parental income, or parental wealth) but also all other circumstances that individuals are born into (including, for instance, shared genetic material, cultural influences, neighborhood conditions, etc.). While sibling correlations provide little insight into the channels of intergenerational influences, they yield a meaningful overall measure of the type of inequality in opportunity to attain wealth based on the circumstances of birth that conflicts with common interpretations of justice (Roemer 1998, Dwarkin 2000). Sibling correlations have frequently been used to assess inequality in the opportunity to attain education, earnings, and other markers of socio-economic success (e.g., Jencks 1972, Solon et al. 1991). To our knowledge, there is only one study that estimates sibling correlations in wealth, finding them to be of similar size to those in earnings (Conley and Glauber 2005). We extend this research in two important ways.},
  keywords = {Intergenerational Wealth},
  note = {Unpublished manuscript}
}

Compared to income and earnings, wealth in the United States is substantially more unequally distributed (Budría Rodríguez et al. 2002; Scholz and Levine 2004). Access to wealth is in turn associated with a wide range of outcomes, including longevity, family formation, and the educational achievement and labor market outcomes of offspring (Attanasio and Emmerson 2003; Charles, Hurst, and Killewald 2013; Conley 1999, 2001; Pfeffer 2011; Bond Huie et al. 2003; Orr 2003; Schneider 2011). Furthermore, these associations are not fully explained by standard measures of socioeconomic advantage, such as income or education. The wealth distribution is thus an important measure of the concentration of social inequality and advantage. Unlike education and income, wealth can also be directly passed down to subsequent generations through bequests or inter vivos transfers. We analyze the role of these transfers in contributing to the concentration of wealth within family lineages. To measure the intergenerational persistence of family wealth, we use sibling correlations that capture the total variance in wealth shared by offspring from the same family. These correlations provide an overall measure of inequality in the opportunity to attain wealth – tied to a variety of factors, including not only specific parental characteristics (such as mother's education, parental income, or parental wealth) but also all other circumstances that individuals are born into (including, for instance, shared genetic material, cultural influences, neighborhood conditions, etc.). While sibling correlations provide little insight into the channels of intergenerational influences, they yield a meaningful overall measure of the type of inequality in opportunity to attain wealth based on the circumstances of birth that conflicts with common interpretations of justice (Roemer 1998, Dwarkin 2000). Sibling correlations have frequently been used to assess inequality in the opportunity to attain education, earnings, and other markers of socio-economic success (e.g., Jencks 1972, Solon et al. 1991). To our knowledge, there is only one study that estimates sibling correlations in wealth, finding them to be of similar size to those in earnings (Conley and Glauber 2005). We extend this research in two important ways.

@article{Rauscher2016,
  title = {Passing It on: Parent-to-Adult Child Financial Transfers for School and Socioeconomic Attainment},
  author = {Rauscher, Emily},
  year = {2016},
  journal = {RSF: Russell Sage Foundation Journal of Social Sciences},
  volume = {2},
  number = {6},
  pages = {172--196},
  doi = {10.7758/RSF.2016.2.6.09},
  url = {https://doi.org/10.7758/RSF.2016.2.6.09},
  abstract = {As wealth inequality increases, the importance of parental financial transfers for socioeconomic attainment may also rise. Using data from the 2013 Panel Study of Income Dynamics Rosters and Transfers Module, this study investigates two questions: how parental financial transfers for education have changed over time, and what the relationship is between these transfers and adult socioeconomic outcomes. Results suggest that transfers for education have increased, have become more commonplace, and have become more dependent on parental wealth over time. Holding constant several individual and parental measures, the relationship between parental transfers for school and adult socioeconomic attainment is positive. This relationship holds when using three-stage least squares models to account for potential endogeneity of financial transfers for school. Overall, results support arguments that parental financial transfers for education facilitate the intergenerational transmission of socioeconomic standing.},
  keywords = {Impacts of Wealth Inequality,Intergenerational Wealth}
}

As wealth inequality increases, the importance of parental financial transfers for socioeconomic attainment may also rise. Using data from the 2013 Panel Study of Income Dynamics Rosters and Transfers Module, this study investigates two questions: how parental financial transfers for education have changed over time, and what the relationship is between these transfers and adult socioeconomic outcomes. Results suggest that transfers for education have increased, have become more commonplace, and have become more dependent on parental wealth over time. Holding constant several individual and parental measures, the relationship between parental transfers for school and adult socioeconomic attainment is positive. This relationship holds when using three-stage least squares models to account for potential endogeneity of financial transfers for school. Overall, results support arguments that parental financial transfers for education facilitate the intergenerational transmission of socioeconomic standing.

@article{ThompsonConley2016,
  title = {Health Shocks and Social Drift: Examining the Relationship between Acute Illness and Family Wealth},
  author = {Thompson, Jason and Conley, Dalton},
  year = {2016},
  journal = {RSF: Russell Sage Foundation Journal of Social Sciences},
  volume = {2},
  number = {6},
  pages = {153--171},
  doi = {10.7758/rsf.2016.2.6.08},
  url = {https://doi.org/10.7758/RSF.2016.2.6.08},
  abstract = {This paper analyzes the extent to which health shocks play a role in black- white wealth inequality. Deploying data from the Panel Study of Income Dynamics, we implement a first- differences identification strategy in estimating the effects of acute health events on changes in wealth for couples across waves of data from 1999 to 2011. We find that although such shocks affect both white and black families, they make black families more vulnerable financially as family heads near retirement. In comparison with their white counterparts, black families that experience an acute health shock are more likely to rely on social safety nets, such as food stamps and Social Security Disability Insurance. Findings hold implications across multiple policy arenas, including health-care and labor law.},
  keywords = {Determinants of Wealth and Wealth Inequality,Impacts of Wealth Inequality,Intergenerational Wealth}
}

This paper analyzes the extent to which health shocks play a role in black- white wealth inequality. Deploying data from the Panel Study of Income Dynamics, we implement a first- differences identification strategy in estimating the effects of acute health events on changes in wealth for couples across waves of data from 1999 to 2011. We find that although such shocks affect both white and black families, they make black families more vulnerable financially as family heads near retirement. In comparison with their white counterparts, black families that experience an acute health shock are more likely to rely on social safety nets, such as food stamps and Social Security Disability Insurance. Findings hold implications across multiple policy arenas, including health-care and labor law.

@incollection{PikettyZucman2015,
  title = {Wealth and Inheritance in the Long Run},
  booktitle = {Handbook of Income Distribution},
  author = {Piketty, Thomas and Zucman, Gabriel},
  year = {2015},
  volume = {2},
  pages = {1303--1368},
  doi = {10.1016/B978-0-444-59429-7.00016-9},
  url = {http://dx.doi.org/10.1016/B978-0-444-59429-7.00016-9},
  abstract = {This chapter offers an overview of the empirical and theoretical research on the long-run evolution of wealth and inheritance. Wealth-income ratios, inherited wealth, and wealth inequalities were high in the eighteenth to nineteenth centuries up until World War I, then sharply dropped during the twentieth century following World War shocks, and have been rising again in the late twentieth and early twenty-first centuries. We discuss the models that can account for these facts. We show that over a wide range of models, the long-run magnitude and concentration of wealth and inheritance are an increasing function of r--g where r- is the net-of-tax rate of return on wealth and g is the economy's growth rate. This suggests that current trends toward rising wealth-income ratios and wealth inequality might continue during the twenty-first century, both because of the slowdown of population and productivity growth, and because of rising international competition to attract capital.},
  chapter = {Ch. 15},
  isbn = {978-0-444-59429-7},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality}
}

This chapter offers an overview of the empirical and theoretical research on the long-run evolution of wealth and inheritance. Wealth-income ratios, inherited wealth, and wealth inequalities were high in the eighteenth to nineteenth centuries up until World War I, then sharply dropped during the twentieth century following World War shocks, and have been rising again in the late twentieth and early twenty-first centuries. We discuss the models that can account for these facts. We show that over a wide range of models, the long-run magnitude and concentration of wealth and inheritance are an increasing function of r–g where r- is the net-of-tax rate of return on wealth and g is the economy's growth rate. This suggests that current trends toward rising wealth-income ratios and wealth inequality might continue during the twenty-first century, both because of the slowdown of population and productivity growth, and because of rising international competition to attract capital.

@book{Wolff2015,
  title = {Inheriting Wealth in {{America}}: Future Boom or Bust?},
  author = {Wolff, Edward N.},
  year = {2015},
  publisher = {Oxford University Press},
  address = {New York},
  doi = {10.1093/acprof:oso/9780199353958.001.0001},
  url = {https://doi.org/10.1093/acprof:oso/9780199353958.001.0001},
  abstract = {Inheritances are often regarded as a great ``evil,'' enabling great fortunes to be passed from one generation to another, exacerbating wealth inequality, and reducing wealth mobility. Using data from the Survey of Consumer Finances, the Panel Study of Income Dynamics, and a simulation model over years 1989 to 2010, I report six major findings. First, wealth transfers (inheritances and gifts) accounted for less than one-quarter of household wealth. However, for persons age 75 and over, the figure was about two-fifths. Indirect evidence from the simulation model indicates a figure closer to two-thirds at end of life---probably the best estimate. Second, despite prognostications of a coming ``inheritance boom,'' only a small uptick in average wealth transfers was observed over these years, and wealth transfers were actually down as a share of household wealth. Third, while wealth transfers are greater in dollar amount for richer than for poorer households, they constitute a smaller share of the accumulated wealth of the rich. Fourth, contrary to popular belief, inheritances and gifts, on net, reduce wealth inequality because they typically flow from richer to poorer persons. Fifth, despite a rapid rise in income inequality, the inequality of wealth transfers shows no discernible time trend from 1989 to 2010. Sixth, among the very wealthy, the share of wealth accounted for by wealth transfers is surprisingly low, only about a sixth, and this share has trended downward over time.},
  isbn = {978-0-19-935395-8},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality}
}

Inheritances are often regarded as a great ``evil,'' enabling great fortunes to be passed from one generation to another, exacerbating wealth inequality, and reducing wealth mobility. Using data from the Survey of Consumer Finances, the Panel Study of Income Dynamics, and a simulation model over years 1989 to 2010, I report six major findings. First, wealth transfers (inheritances and gifts) accounted for less than one-quarter of household wealth. However, for persons age 75 and over, the figure was about two-fifths. Indirect evidence from the simulation model indicates a figure closer to two-thirds at end of life—probably the best estimate. Second, despite prognostications of a coming ``inheritance boom,'' only a small uptick in average wealth transfers was observed over these years, and wealth transfers were actually down as a share of household wealth. Third, while wealth transfers are greater in dollar amount for richer than for poorer households, they constitute a smaller share of the accumulated wealth of the rich. Fourth, contrary to popular belief, inheritances and gifts, on net, reduce wealth inequality because they typically flow from richer to poorer persons. Fifth, despite a rapid rise in income inequality, the inequality of wealth transfers shows no discernible time trend from 1989 to 2010. Sixth, among the very wealthy, the share of wealth accounted for by wealth transfers is surprisingly low, only about a sixth, and this share has trended downward over time.

@unpublished{Boserupetal2014,
  title = {Stability and Persistence of Intergenerational Wealth Formation: Evidence from {{Danish}} Wealth Records of Three Generations},
  author = {Boserup, Simon Halphen and Kopczuk, Wojciech and Kreiner, Claus Thustrup},
  year = {2014},
  month = oct,
  url = {https://web2.econ.ku.dk/ctk/Papers/WealthAcrossGen.pdf},
  urldate = {2024-05-28},
  abstract = {This paper provides novel insights on intergenerational wealth mobility using Danish wealth records. Non-parametric evidence reveals an almost linear relationship between wealth ranks of children and parents with a slope of 1/4, except at the very top of the distribution where the slope is much higher. The wealth relationship is surprisingly stable across subsamples and after controlling for key socioeconomic outcomes. This is consistent with a unidimensional latent factor governing a substantial part of the complicated underlying wealth dynamics and wealth of past generations summarizing almost all relevant information when predicting child wealth. Wealth of grandparents has very strong explanatory power conditional on any level of parental wealth showing that standard two-generation measures severely understate the extent of intergenerational persistence in wealth formation.},
  keywords = {Intergenerational Wealth},
  note = {Unpublished manuscript}
}

This paper provides novel insights on intergenerational wealth mobility using Danish wealth records. Non-parametric evidence reveals an almost linear relationship between wealth ranks of children and parents with a slope of 1/4, except at the very top of the distribution where the slope is much higher. The wealth relationship is surprisingly stable across subsamples and after controlling for key socioeconomic outcomes. This is consistent with a unidimensional latent factor governing a substantial part of the complicated underlying wealth dynamics and wealth of past generations summarizing almost all relevant information when predicting child wealth. Wealth of grandparents has very strong explanatory power conditional on any level of parental wealth showing that standard two-generation measures severely understate the extent of intergenerational persistence in wealth formation.

@techreport{Elinderetal2014,
  type = {Working {{Paper}}},
  title = {Estates, Bequests, and Inheritances in {{Sweden}} - {{A}} Look into the {{Belinda}} Databases},
  author = {Elinder, Mikael and Erixson, Oscar and Escobar, Sebastian and Ohlsson, Henry},
  year = {2014},
  month = nov,
  number = {2014:14},
  institution = {Uppsala Center for Fiscal Studies Department of Economics},
  url = {https://swopec.hhs.se/uufswp/abs/uufswp2014_014.htm},
  urldate = {2024-05-28},
  abstract = {The objective of this paper is to describe two new administrative Swedish databases, referred to as the Belinda databases. Together, these databases contain the most detailed individual-level data on estates, be- quests, and inheritances currently available. We present descriptive statis- tics for the key variables in the databases to give a picture of the size of estates, the content of the bequests, and who the recipients of the in- heritances are. The statistics may serve as a point of reference for other scholars, but also as an illustration of the various research possibilities that the databases provide and how the data can be matched with other ad- ministrative registers. We also, briefly, describe the institutional context regarding intergenerational transfers in Sweden, including the inheritance law and the inheritance tax.},
  keywords = {Intergenerational Wealth,Methods of Estimation of Wealth Inequality}
}

The objective of this paper is to describe two new administrative Swedish databases, referred to as the Belinda databases. Together, these databases contain the most detailed individual-level data on estates, be- quests, and inheritances currently available. We present descriptive statis- tics for the key variables in the databases to give a picture of the size of estates, the content of the bequests, and who the recipients of the in- heritances are. The statistics may serve as a point of reference for other scholars, but also as an illustration of the various research possibilities that the databases provide and how the data can be matched with other ad- ministrative registers. We also, briefly, describe the institutional context regarding intergenerational transfers in Sweden, including the inheritance law and the inheritance tax.

@article{Isaac2014,
  title = {The Intergenerational Propagation of Wealth Inequality},
  author = {Isaac, Alan G.},
  year = {2014},
  journal = {Metroeconomica},
  volume = {65},
  number = {4},
  pages = {571--584},
  doi = {10.1111/meca.12057},
  url = {https://doi.org/10.1111/meca.12057},
  abstract = {This paper highlights the crucial role of demographic assumptions in models of the intergenerational transmission of wealth inequality. Specifically, we show that Alan Blinder's surprising predictions that bequest and mating practices can sustain but cannot cause wealth inequality are extremely fragile. We show that these predictions depend on a common and apparently minor demographic assumption: fixed sex ratios in family composition. We implement the Blinder model as an agent-based simulation and show that without this demographic assumption such familial institutions are causative for wealth inequality, even in the long run.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

This paper highlights the crucial role of demographic assumptions in models of the intergenerational transmission of wealth inequality. Specifically, we show that Alan Blinder's surprising predictions that bequest and mating practices can sustain but cannot cause wealth inequality are extremely fragile. We show that these predictions depend on a common and apparently minor demographic assumption: fixed sex ratios in family composition. We implement the Blinder model as an agent-based simulation and show that without this demographic assumption such familial institutions are causative for wealth inequality, even in the long run.

@book{Piketty2014,
  title = {Capital in the Twenty-First Century},
  author = {Piketty, Thomas},
  translator = {Goldhammer, Arthur},
  year = {2014},
  publisher = {The Belknap Press of Harvard University Press},
  address = {Cambridge, MA},
  url = {http://piketty.pse.ens.fr/en/capital21c2},
  urldate = {2022-02-25},
  isbn = {978-0-674-24507-5},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Impacts of Wealth Inequality,Intergenerational Wealth,Methods of Estimation of Wealth Inequality,Trends in Aggregate Wealth and Wealth Inequality,Wealth Taxation}
}

@article{Pikettyetal2014,
  title = {Inherited vs Self-Made Wealth: Theory \& Evidence from a Rentier Society ({{Paris}} 1872--1927)},
  author = {Piketty, Thomas and {Postel-Vinay}, Gilles and Rosenthal, Jean-Laurent},
  year = {2014},
  journal = {Explorations in Economic History},
  volume = {51},
  number = {1},
  pages = {21--40},
  doi = {10.1016/j.eeh.2013.07.004},
  url = {https://doi.org/10.1016/j.eeh.2013.07.004},
  abstract = {We divide decedents into two groups: "rentiers" (whose wealth is smaller than the capitalized value of their inherited wealth) and "savers" (who consumed less than their labor income). Applying this split to a unique micro data set on inheritance and matrimonial property regimes, we find that Paris from 1872 to 1927 was a "rentier society". Rentiers made up about 10\% of the population of Parisians but owned 70\% of aggregate wealth. Rentier societies thrive when the rate of return on private wealth r is larger than the growth rate g (say, r. = 4\% vs g. = 2\%). This was the case in the 19th and early 20th centuries and is likely to happen again in the 21st century. At the time, top successors' capital income sustains living standards far beyond what labor income alone would permit.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

We divide decedents into two groups: "rentiers" (whose wealth is smaller than the capitalized value of their inherited wealth) and "savers" (who consumed less than their labor income). Applying this split to a unique micro data set on inheritance and matrimonial property regimes, we find that Paris from 1872 to 1927 was a "rentier society". Rentiers made up about 10% of the population of Parisians but owned 70% of aggregate wealth. Rentier societies thrive when the rate of return on private wealth r is larger than the growth rate g (say, r. = 4% vs g. = 2%). This was the case in the 19th and early 20th centuries and is likely to happen again in the 21st century. At the time, top successors' capital income sustains living standards far beyond what labor income alone would permit.

@article{WolffGittleman2014,
  title = {Inheritances and the Distribution of Wealth or Whatever Happened to the Great Inheritance Boom?},
  author = {Wolff, Edward N. and Gittleman, Maury},
  year = {2014},
  month = dec,
  journal = {The Journal of Economic Inequality},
  volume = {12},
  number = {4},
  pages = {439--468},
  doi = {10.1007/s10888-013-9261-8},
  url = {https://doi.org/10.1007/s10888-013-9261-8},
  abstract = {Using data from the Survey of Consumer Finances (SCF), we found that on average over the period from 1989 to 2007, about one fifth of American households at a given point of time reported a wealth transfer and these accounted for quite a sizeable figure, about a quarter of their net worth. Over the lifetime, about 30 percent of households could expect to receive a wealth transfer and these would account for close to 40 \% of their net worth near time of death. However, there is little evidence of an inheritance ``boom.'' In fact, from 1989 to 2007, the share of households reporting a wealth transfer fell by 2.5 percentage points, a time trend statistically significant at the one percent level. The average value of inheritances received among all households did increase but at a slow pace, by 10 \%; the time trend is not statistically significant. Wealth transfers as a proportion of current net worth fell sharply over this period, from 29 to 19 \%, though the time trend once again is not statistically significant. We also found that inheritances and other wealth transfers tend to be equalizing in terms of the distribution of household wealth, though a number of caveats apply to this result.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Using data from the Survey of Consumer Finances (SCF), we found that on average over the period from 1989 to 2007, about one fifth of American households at a given point of time reported a wealth transfer and these accounted for quite a sizeable figure, about a quarter of their net worth. Over the lifetime, about 30 percent of households could expect to receive a wealth transfer and these would account for close to 40 % of their net worth near time of death. However, there is little evidence of an inheritance ``boom.'' In fact, from 1989 to 2007, the share of households reporting a wealth transfer fell by 2.5 percentage points, a time trend statistically significant at the one percent level. The average value of inheritances received among all households did increase but at a slow pace, by 10 %; the time trend is not statistically significant. Wealth transfers as a proportion of current net worth fell sharply over this period, from 29 to 19 %, though the time trend once again is not statistically significant. We also found that inheritances and other wealth transfers tend to be equalizing in terms of the distribution of household wealth, though a number of caveats apply to this result.

@incollection{Kopczuk2013a,
  title = {Taxation of Intergenerational Transfers and Wealth},
  booktitle = {Handbook of Public Economics},
  author = {Kopczuk, Wojciech},
  editor = {Auerbach, Alan J. and Chetty, Raj and Feldstein, Martin and Saez, Emmanuel},
  year = {2013},
  number = {4},
  pages = {329--390},
  publisher = {Elsevier},
  doi = {10.1016/B978-0-444-53759-1.00006-6},
  url = {https://doi.org/10.1016/B978-0-444-53759-1.00006-6},
  abstract = {In this chapter, I review empirical and theoretical literature on taxation of intergenerational transfers (estates, bequests, inheritances, inter vivos gifts) and wealth. The main message may be summarized as follows. Empirical evidence on bequest motivations and responses to estate taxation is spotty and much remains be done, but what we know points in the direction of (1) mixed motives, (2) heterogeneity of preferences, and (3) importance of retaining control over wealth. These patterns are important for normative analysis of taxation toward the top of the distribution. Theoretical work should further focus on understanding implications of inequality of inherited wealth: the topic that has been neglected in the past, even though it is closely related to-more carefully studied, but arguably much less important in practice-externalities from giving. Potential externalities from wealth accumulation and concentration are yet to be seriously addressed. {\copyright} 2013 Elsevier B.V.},
  chapter = {Ch. 6},
  keywords = {Cross-National Comparisons,Estate Inheritance and Gift Taxes,Intergenerational Wealth},
  annotation = {volume 5}
}

In this chapter, I review empirical and theoretical literature on taxation of intergenerational transfers (estates, bequests, inheritances, inter vivos gifts) and wealth. The main message may be summarized as follows. Empirical evidence on bequest motivations and responses to estate taxation is spotty and much remains be done, but what we know points in the direction of (1) mixed motives, (2) heterogeneity of preferences, and (3) importance of retaining control over wealth. These patterns are important for normative analysis of taxation toward the top of the distribution. Theoretical work should further focus on understanding implications of inequality of inherited wealth: the topic that has been neglected in the past, even though it is closely related to-more carefully studied, but arguably much less important in practice-externalities from giving. Potential externalities from wealth accumulation and concentration are yet to be seriously addressed. © 2013 Elsevier B.V.

@article{SemyonovLewin-Epstein2013,
  title = {Ways to Richness: Determination of Household Wealth in 16 Countries},
  author = {Semyonov, Moshe and {Lewin-Epstein}, Noah},
  year = {2013},
  month = dec,
  journal = {European Sociological Review},
  volume = {29},
  number = {6},
  pages = {1134--1148},
  doi = {10.1093/esr/jct001},
  url = {https://doi.org/10.1093/esr/jct001},
  abstract = {The study examines determination of wealth among older households from a cross-national comparative perspective. Data obtained from 16 national samples reveal that in all countries household wealth is accumulated through two major mechanisms: labor market income and inter-generational transfers. Higher income and reception of inheritance are likely to increase household net worth. Despite considerable cross-country variation in the distribution of wealth, the effects of income and inheritance on net worth are found to be uniform across societies. Further analysis does not detect any systematic association between household net worth and country-level characteristics or social and taxation policies. Nor does it detect any systematic association between country structural attributes and the ways that wealth is determined and accumulated. The findings are discussed in light of previous research and theory on the topic.},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

The study examines determination of wealth among older households from a cross-national comparative perspective. Data obtained from 16 national samples reveal that in all countries household wealth is accumulated through two major mechanisms: labor market income and inter-generational transfers. Higher income and reception of inheritance are likely to increase household net worth. Despite considerable cross-country variation in the distribution of wealth, the effects of income and inheritance on net worth are found to be uniform across societies. Further analysis does not detect any systematic association between household net worth and country-level characteristics or social and taxation policies. Nor does it detect any systematic association between country structural attributes and the ways that wealth is determined and accumulated. The findings are discussed in light of previous research and theory on the topic.

@article{Bjorklundetal2012,
  title = {Intergenerational Top Income Mobility in {{Sweden}}: Capitalist Dynasties in the Land of Equal Opportunity?},
  author = {Bj{\"o}rklund, Anders and Roine, Jesper and Waldenstr{\"o}m, Daniel},
  year = {2012},
  journal = {Journal of Public Economics},
  volume = {96},
  pages = {474--484},
  doi = {10.1016/j.jpubeco.2012.02.003},
  url = {https://doi.org/10.1016/j.jpubeco.2012.02.003},
  abstract = {This paper presents new evidence on intergenerational mobility at the top of the income and earnings distributions. Using a large dataset of matched father-son pairs in Sweden, we find that intergenerational transmission is very strong at the top, more so for income than for earnings. At the extreme top (top 0.1\%) income transmission is remarkable with an intergenerational elasticity of approximately 0.9. We also study potential transmission mechanisms and find that IQ, non-cognitive skills and education of the sons are all unlikely channels in explaining the strong transmission. Within the top percentile, increases in the income of the fathers, if they are related at all, are negatively associated with these variables. Wealth, on the other hand, has a significantly positive association. Our results suggest that Sweden, known for having relatively high intergenerational mobility in general, is a society in which transmission remains strong at the very top of the distribution and wealth is the most likely channel.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

This paper presents new evidence on intergenerational mobility at the top of the income and earnings distributions. Using a large dataset of matched father-son pairs in Sweden, we find that intergenerational transmission is very strong at the top, more so for income than for earnings. At the extreme top (top 0.1%) income transmission is remarkable with an intergenerational elasticity of approximately 0.9. We also study potential transmission mechanisms and find that IQ, non-cognitive skills and education of the sons are all unlikely channels in explaining the strong transmission. Within the top percentile, increases in the income of the fathers, if they are related at all, are negatively associated with these variables. Wealth, on the other hand, has a significantly positive association. Our results suggest that Sweden, known for having relatively high intergenerational mobility in general, is a society in which transmission remains strong at the very top of the distribution and wealth is the most likely channel.

@article{Elinderetal2012,
  title = {The Impact of Inheritances on Heirs' Labor and Capital Income},
  author = {Elinder, Mikael and Erixson, Oscar and Ohlsson, Henry},
  year = {2012},
  journal = {The B.E. Journal of Economic Analysis \& Policy},
  volume = {12},
  number = {1},
  pages = {1--35},
  doi = {10.1515/1935-1682.3324},
  url = {https://doi.org/10.1515/1935-1682.3324},
  abstract = {The objective of this paper is to study when and how much labor and capital income of heirs respond to inheritances. We estimate fixed effects models following direct heirs, inheriting in 2004, during the years 2000--2008 using Swedish panel data. Our first main result is that the more the heir inherits, the lower her labor income becomes. This labor income effect appears in the years after the heir had inherited and is stronger for old heirs than for young heirs. We also find evidence of anticipation effects that occur before the actual transfer. Our second main result is that the more the heir inherits, the higher her capital income becomes. This effect only appears in the years after receiving the inheritance. It seems to be dissipating after a couple of years.},
  keywords = {Intergenerational Wealth}
}

The objective of this paper is to study when and how much labor and capital income of heirs respond to inheritances. We estimate fixed effects models following direct heirs, inheriting in 2004, during the years 2000–2008 using Swedish panel data. Our first main result is that the more the heir inherits, the lower her labor income becomes. This labor income effect appears in the years after the heir had inherited and is stronger for old heirs than for young heirs. We also find evidence of anticipation effects that occur before the actual transfer. Our second main result is that the more the heir inherits, the higher her capital income becomes. This effect only appears in the years after receiving the inheritance. It seems to be dissipating after a couple of years.

@article{AndersenNielsen2011,
  title = {Participation Constraints in the Stock Market: Evidence from Unexpected Inheritance Due to Sudden Death},
  author = {Andersen, Steffen and Nielsen, Kasper Meisner},
  year = {2011},
  journal = {The Review of Financial Studies},
  volume = {24},
  number = {5},
  pages = {1667--1697},
  doi = {10.1093/rfs/hhq146},
  url = {https://doi.org/10.1093/rfs/hhq146},
  abstract = {We use a natural experiment to investigate the impact of participation constraints on individuals' decisions to invest in the stock market. Unexpected inheritance due to sudden deaths results in exogenous variation in financial wealth, and allows us to examine whether fixed entry and ongoing participation costs cause non-participation. We have three key findings. First, windfall wealth has a positive effect on participation. Second, the majority of households do not react to sizeable windfalls by entering the stock market, but hold on to substantial safe assets---even over longer horizons. Third, the majority of households inheriting stock holdings actively sell the entire portfolio. Overall, these findings suggest that participation by many individuals is unlikely to be constrained by financial participation costs.},
  keywords = {Intergenerational Wealth}
}

We use a natural experiment to investigate the impact of participation constraints on individuals' decisions to invest in the stock market. Unexpected inheritance due to sudden deaths results in exogenous variation in financial wealth, and allows us to examine whether fixed entry and ongoing participation costs cause non-participation. We have three key findings. First, windfall wealth has a positive effect on participation. Second, the majority of households do not react to sizeable windfalls by entering the stock market, but hold on to substantial safe assets—even over longer horizons. Third, the majority of households inheriting stock holdings actively sell the entire portfolio. Overall, these findings suggest that participation by many individuals is unlikely to be constrained by financial participation costs.

@article{Benhabibetal2011,
  title = {The Distribution of Wealth and Fiscal Policy in Economies with Finitely Lived Agents},
  author = {Benhabib, Jess and Bisin, Alberto and Zhu, Shenghao},
  year = {2011},
  journal = {Econometrica},
  volume = {79},
  number = {1},
  pages = {123--157},
  doi = {10.3982/ECTA8416},
  url = {http://doi.org/10.3982/ECTA8416},
  abstract = {We study the dynamics of the distribution of wealth in an overlapping generation economy with finitely lived agents and intergenerational transmission of wealth. Financial markets are incomplete, exposing agents to both labor and capital income risk. We show that the stationary wealth distribution is a Pareto distribution in the right tail and that it is capital income risk, rather than labor income, that drives the properties of the right tail of the wealth distribution. We also study analytically the dependence of the distribution of wealth---of wealth inequality in particular---on various fiscal policy instruments like capital income taxes and estate taxes, and on different degrees of social mobility. We show that capital income and estate taxes can significantly reduce wealth inequality, as do institutions favoring social mobility. Finally, we calibrate the economy to match the Lorenz curve of the wealth distribution of the U.S. economy.},
  keywords = {Determinants of Wealth and Wealth Inequality,Estate Inheritance and Gift Taxes,Intergenerational Wealth,Wealth Taxation}
}

We study the dynamics of the distribution of wealth in an overlapping generation economy with finitely lived agents and intergenerational transmission of wealth. Financial markets are incomplete, exposing agents to both labor and capital income risk. We show that the stationary wealth distribution is a Pareto distribution in the right tail and that it is capital income risk, rather than labor income, that drives the properties of the right tail of the wealth distribution. We also study analytically the dependence of the distribution of wealth—of wealth inequality in particular—on various fiscal policy instruments like capital income taxes and estate taxes, and on different degrees of social mobility. We show that capital income and estate taxes can significantly reduce wealth inequality, as do institutions favoring social mobility. Finally, we calibrate the economy to match the Lorenz curve of the wealth distribution of the U.S. economy.

@article{Piketty2011,
  title = {On the Long-Run Evolution of Inheritance: {{France}} 1820--2050},
  author = {Piketty, Thomas},
  year = {2011},
  journal = {Quarterly Journal of Economics},
  volume = {126},
  number = {3},
  pages = {1071--1131},
  doi = {10.1093/qje/qjr020},
  url = {https://doi.org/10.1093/qje/qjr020},
  abstract = {This article attempts to document and account for the long-run evolution of inheritance. We find that in a country like France the annual flow of inheritance was about 20--25\% of national income between 1820 and 1910, down to less than 5\% in 1950, and back up to about 15\% by 2010. A simple theoretical model of wealth accumulation, growth, and inheritance can fully account for the observed U-shaped pattern and levels. Using this model, we find that under plausible assumptions the annual bequest flow might reach about 20--25\% of national income by 2050. This corresponds to a capitalized bequest share in total wealth accumulation well above 100\%. Our findings illustrate the fact that when the growth rate g is small, and when the rate of return to private wealth r is permanently and substantially larger than the growth rate (say, r = 4--5\% versus g = 1--2\%), which was the case in the nineteenth century and early twentieth century and is likely to happen again in the twenty-first century, then past wealth and inheritance are bound to play a key role for aggregate wealth accumulation and the structure of lifetime inequality. Contrary to a widespread view, modern economic growth did not kill inheritance.},
  isbn = {00335533},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality}
}

This article attempts to document and account for the long-run evolution of inheritance. We find that in a country like France the annual flow of inheritance was about 20–25% of national income between 1820 and 1910, down to less than 5% in 1950, and back up to about 15% by 2010. A simple theoretical model of wealth accumulation, growth, and inheritance can fully account for the observed U-shaped pattern and levels. Using this model, we find that under plausible assumptions the annual bequest flow might reach about 20–25% of national income by 2050. This corresponds to a capitalized bequest share in total wealth accumulation well above 100%. Our findings illustrate the fact that when the growth rate g is small, and when the rate of return to private wealth r is permanently and substantially larger than the growth rate (say, r = 4–5% versus g = 1–2%), which was the case in the nineteenth century and early twentieth century and is likely to happen again in the twenty-first century, then past wealth and inheritance are bound to play a key role for aggregate wealth accumulation and the structure of lifetime inequality. Contrary to a widespread view, modern economic growth did not kill inheritance.

@article{BorgerhoffMulderetal2010,
  title = {Pastoralism and Wealth Inequality: Revisiting an Old Question},
  author = {Borgerhoff Mulder, Monique and Fazzio, Ila and Irons, William and McElreath, Richard L. and Bowles, Samuel and Bell, Adrian and Hertz, Tom and Hazzah, Leela},
  year = {2010},
  journal = {Current Anthropology},
  volume = {51},
  number = {1},
  pages = {35--48},
  publisher = {The University of Chicago Press},
  doi = {10.1086/648561},
  url = {https://doi.org/10.1086/648561},
  abstract = {Pastoralist societies are often portrayed as economically egalitarian, reflecting the volatile nature of livestock herds and the existence of multiple institutions that allow for the redistribution of wealth as a form of insurance. Motivated by an interest in the role of intergenerational transmission in structuring persistent inequality, we examine the extent of intergenerational transmission of material wealth (four measures) and embodied wealth (one measure) for four pastoral populations from different parts of the world (East Africa, West Africa, and southwest Asia). We find substantial levels of intergenerational transmission and marked economic inequality. We argue that the high correspondence between the material wealth of parents and offspring reflects the importance of the family in the transmission of wealth through bequests, positive assortment by wealth in the domains of marriage and herd management, and positive returns to scale as might occur when raising or defending large herds. We conclude that the analysis of intergenerational transmission provides new insights into the much-debated extent of egalitarianism among pastoralists.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Pastoralist societies are often portrayed as economically egalitarian, reflecting the volatile nature of livestock herds and the existence of multiple institutions that allow for the redistribution of wealth as a form of insurance. Motivated by an interest in the role of intergenerational transmission in structuring persistent inequality, we examine the extent of intergenerational transmission of material wealth (four measures) and embodied wealth (one measure) for four pastoral populations from different parts of the world (East Africa, West Africa, and southwest Asia). We find substantial levels of intergenerational transmission and marked economic inequality. We argue that the high correspondence between the material wealth of parents and offspring reflects the importance of the family in the transmission of wealth through bequests, positive assortment by wealth in the domains of marriage and herd management, and positive returns to scale as might occur when raising or defending large herds. We conclude that the analysis of intergenerational transmission provides new insights into the much-debated extent of egalitarianism among pastoralists.

@article{FarhiWerning2010,
  title = {Progressive Estate Taxation},
  author = {Farhi, Emmanuel and Werning, Iv{\'a}n},
  year = {2010},
  journal = {The Quarterly Journal of Economics},
  volume = {125},
  number = {2},
  pages = {635--673},
  doi = {10.1162/qjec.2010.125.2.635},
  url = {http://doi.org/10.1162/qjec.2010.125.2.635},
  abstract = {We present a model with altruistic parents and heterogeneous productivity. We derive two key properties for optimal estate taxation. First, the estate tax should be progressive, so that parents leaving a higher bequest face a lower net return on bequests. Second, marginal estate taxes should be negative, so that all parents face a marginal subsidy on bequests. Both properties can be implemented with a simple nonlinear tax on bequests, levied separately from the income tax. These results apply to other intergenerational transfers, such as educational investments, and are robust to endogenous fertility choices. Both estate or inheritance taxes can implement the optimal allocation, but we show that the inheritance tax has some advantages. Finally, when we impose an ad hoc constraint requiring marginal estate taxes to be nonnegative, the optimum features a zero tax up to an exemption level, and a progressive tax thereafter.},
  keywords = {Estate Inheritance and Gift Taxes,Intergenerational Wealth}
}

We present a model with altruistic parents and heterogeneous productivity. We derive two key properties for optimal estate taxation. First, the estate tax should be progressive, so that parents leaving a higher bequest face a lower net return on bequests. Second, marginal estate taxes should be negative, so that all parents face a marginal subsidy on bequests. Both properties can be implemented with a simple nonlinear tax on bequests, levied separately from the income tax. These results apply to other intergenerational transfers, such as educational investments, and are robust to endogenous fertility choices. Both estate or inheritance taxes can implement the optimal allocation, but we show that the inheritance tax has some advantages. Finally, when we impose an ad hoc constraint requiring marginal estate taxes to be nonnegative, the optimum features a zero tax up to an exemption level, and a progressive tax thereafter.

@article{EdlundKopczuk2009,
  title = {Women, Wealth, and Mobility},
  author = {Edlund, Lena and Kopczuk, Wojciech},
  year = {2009},
  journal = {American Economic Review},
  volume = {99},
  number = {1},
  pages = {146--178},
  doi = {10.1257/aer.99.1.146},
  url = {http://doi.org/10.1257/aer.99.1.146},
  abstract = {Using estate tax returns data, we observe that the share of women among the very wealthy in the United States peaked in the late 1960s at nearly one-half and then declined to one-third. We argue that this pattern reflects changes in the importance of dynastic wealth, with the share of women proxying for inherited wealth. If so, wealth mobility decreased until the 1970s and rose thereafter. Such an interpretation is consistent with technological change driving long-term trends in mobility and inequality, as well as the recent divergence between top wealth and top income shares documented elsewhere.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Using estate tax returns data, we observe that the share of women among the very wealthy in the United States peaked in the late 1960s at nearly one-half and then declined to one-third. We argue that this pattern reflects changes in the importance of dynastic wealth, with the share of women proxying for inherited wealth. If so, wealth mobility decreased until the 1970s and rose thereafter. Such an interpretation is consistent with technological change driving long-term trends in mobility and inequality, as well as the recent divergence between top wealth and top income shares documented elsewhere.

@article{Horioka2009,
  title = {Do Bequests Increase or Decrease Wealth Inequalities?},
  author = {Horioka, Charles Yuji},
  year = {2009},
  journal = {Economics Letters},
  volume = {103},
  number = {1},
  pages = {23--25},
  doi = {10.1016/j.econlet.2009.01.009},
  url = {https://doi.org/10.1016/j.econlet.2009.01.009},
  abstract = {This paper finds that individuals in Japan do not leave very significant bequests, that parents often require a quid pro quo for bequests to their children, and that wealthier individuals leave less bequests, meaning that bequests ameliorate wealth inequalities.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

This paper finds that individuals in Japan do not leave very significant bequests, that parents often require a quid pro quo for bequests to their children, and that wealthier individuals leave less bequests, meaning that bequests ameliorate wealth inequalities.

@article{Mulderetal2009,
  title = {Intergenerational Wealth Transmission and the Dynamics of Inequality in Small-Scale Societies},
  author = {Mulder, Monique Borgerhoff and Bowles, Samuel and Hertz, Tom and Bell, Adrian and Beise, Jan and Clark, Greg and Fazzio, Ila and Gurven, Michael and Hill, Kim and Hooper, Paul L. and Irons, William and Kaplan, Hillard and Leonetti, Donna and Low, Bobbi and Marlowe, Frank and McElreath, Richard and Naidu, Suresh and Nolin, David and Piraino, Patrizio and Quinlan, Rob and Schniter, Eric and Sear, Rebecca and Shenk, Mary and Smith, Eric Alden and {von Rueden}, Christopher and Wiessner, Polly},
  year = {2009},
  journal = {Science},
  volume = {326},
  number = {5953},
  pages = {682--688},
  doi = {10.1126/science.1178336},
  url = {http://doi.org/10.1126/science.1178336},
  abstract = {Small-scale human societies range from foraging bands with a strong egalitarian ethos to more economically stratified agrarian and pastoral societies. We explain this variation in inequality using a dynamic model in which a population's long-run steady-state level of inequality depends on the extent to which its most important forms of wealth are transmitted within families across generations. We estimate the degree of intergenerational transmission of three different types of wealth (material, embodied, and relational), as well as the extent of wealth inequality in 21 historical and contemporary populations. We show that intergenerational transmission of wealth and wealth inequality are substantial among pastoral and small-scale agricultural societies (on a par with or even exceeding the most unequal modern industrial economies) but are limited among horticultural and foraging peoples (equivalent to the most egalitarian of modern industrial populations). Differences in the technology by which a people derive their livelihood and in the institutions and norms making up the economic system jointly contribute to this pattern.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth},
  pmid = {19900925}
}

Small-scale human societies range from foraging bands with a strong egalitarian ethos to more economically stratified agrarian and pastoral societies. We explain this variation in inequality using a dynamic model in which a population's long-run steady-state level of inequality depends on the extent to which its most important forms of wealth are transmitted within families across generations. We estimate the degree of intergenerational transmission of three different types of wealth (material, embodied, and relational), as well as the extent of wealth inequality in 21 historical and contemporary populations. We show that intergenerational transmission of wealth and wealth inequality are substantial among pastoral and small-scale agricultural societies (on a par with or even exceeding the most unequal modern industrial economies) but are limited among horticultural and foraging peoples (equivalent to the most egalitarian of modern industrial populations). Differences in the technology by which a people derive their livelihood and in the institutions and norms making up the economic system jointly contribute to this pattern.

@incollection{CannariDAlessio2008,
  title = {Intergenerational Transfers in {{Italy}}},
  booktitle = {Household Wealth in {{Italy}}},
  author = {Cannari, Luigi and D'Alessio, Giovanni},
  year = {2008},
  pages = {255--286},
  publisher = {Banca d'Italia},
  url = {https://www.bancaditalia.it/pubblicazioni/altri-atti-convegni/2007-ricchezza-famiglie-ita/index.html},
  chapter = {2},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

@article{MorganScott2007,
  title = {Intergenerational Transfers and the Prospects for Increasing Wealth Inequality},
  author = {Morgan, Stephen L. and Scott, John C.},
  year = {2007},
  journal = {Social Science Research},
  volume = {36},
  number = {3},
  pages = {1105--1134},
  doi = {10.1016/j.ssresearch.2006.09.006},
  url = {https://doi.org/10.1016/j.ssresearch.2006.09.006},
  abstract = {Analyzing two cohorts from the Health and Retirement Survey from 1992 to 2002, we investigate the growth of wealth inequality and the determinants of intergenerational transfers. Although wealth inequality has grown substantially, patterns of intergenerational transfers that we are able to assess have changed only modestly. Based on these results, we conclude that concerns that the level of inequality will continue to increase across its full distribution appear unwarranted. This conclusion, however, is limited in two important respects. First, it is based on a single cohort comparison which, however well-chosen, does not guarantee that other cohort comparisons would yield the same results. Second, the nature of survey research on wealth prevents any incisive analysis of the explosive growth of the wealth holdings of those at the very top of the distribution (i.e., those at the 99th percentile and beyond). Thus, we cannot rule out the possibility that a comparison of those beyond the 99th percentile to everyone else would give evidence that, at this pivot point of the distribution, a new level of self-perpetuation has in fact arrived.},
  keywords = {Intergenerational Wealth}
}

Analyzing two cohorts from the Health and Retirement Survey from 1992 to 2002, we investigate the growth of wealth inequality and the determinants of intergenerational transfers. Although wealth inequality has grown substantially, patterns of intergenerational transfers that we are able to assess have changed only modestly. Based on these results, we conclude that concerns that the level of inequality will continue to increase across its full distribution appear unwarranted. This conclusion, however, is limited in two important respects. First, it is based on a single cohort comparison which, however well-chosen, does not guarantee that other cohort comparisons would yield the same results. Second, the nature of survey research on wealth prevents any incisive analysis of the explosive growth of the wealth holdings of those at the very top of the distribution (i.e., those at the 99th percentile and beyond). Thus, we cannot rule out the possibility that a comparison of those beyond the 99th percentile to everyone else would give evidence that, at this pivot point of the distribution, a new level of self-perpetuation has in fact arrived.

@article{CagettiDeNardi2006,
  title = {Entrepreneurship, Frictions, and Wealth},
  author = {Cagetti, Marco and De Nardi, Mariacristina},
  year = {2006},
  journal = {Journal of Political Economy},
  volume = {114},
  number = {5},
  pages = {835--870},
  publisher = {The University of Chicago Press},
  doi = {10.1086/508032},
  abstract = {This paper constructs and calibrates a parsimonious model of occupational choice that allows for entrepreneurial entry, exit, and investment decisions in the presence of borrowing constraints. The model fits very well a number of empirical observations, including the observed wealth distribution for entrepreneurs and workers. At the aggregate level, more restrictive borrowing constraints generate less wealth concentration and reduce average firm size, aggregate capital, and the fraction of entrepreneurs. Voluntary bequests allow some high-ability workers to establish or enlarge an entrepreneurial activity. With accidental bequests only, there would be fewer very large firms and less aggregate capital and wealth concentration.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

This paper constructs and calibrates a parsimonious model of occupational choice that allows for entrepreneurial entry, exit, and investment decisions in the presence of borrowing constraints. The model fits very well a number of empirical observations, including the observed wealth distribution for entrepreneurs and workers. At the aggregate level, more restrictive borrowing constraints generate less wealth concentration and reduce average firm size, aggregate capital, and the fraction of entrepreneurs. Voluntary bequests allow some high-ability workers to establish or enlarge an entrepreneurial activity. With accidental bequests only, there would be fewer very large firms and less aggregate capital and wealth concentration.

@techreport{Joulfaian2006,
  type = {Working {{Paper}}},
  title = {Inheritance and Saving},
  author = {Joulfaian, David},
  year = {2006},
  month = oct,
  number = {12569},
  institution = {National Bureau of Economic Research},
  doi = {10.3386/w12569},
  url = {https://doi.org/10.3386/w12569},
  abstract = {This paper explores the effects of inheritances on the saving of recipients. Information on inheritances and heirs is obtained from estate tax records of decedents which are linked to the income tax records of beneficiaries. The observed pattern of wealth mobility within two years of the receipt of inheritances and multivariate analyses show that wealth increases by less than the full amount of the inheritance received. Similarly, and consistent with previous findings, large inheritances are found to depress labor force participation.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

This paper explores the effects of inheritances on the saving of recipients. Information on inheritances and heirs is obtained from estate tax records of decedents which are linked to the income tax records of beneficiaries. The observed pattern of wealth mobility within two years of the receipt of inheritances and multivariate analyses show that wealth increases by less than the full amount of the inheritance received. Similarly, and consistent with previous findings, large inheritances are found to depress labor force participation.

@article{MorissetteZhang2006,
  title = {Revisiting Wealth Inequality},
  author = {Morissette, Ren{\'e} and Zhang, Xuelin},
  year = {2006},
  journal = {Perspectives on Labour and Income},
  volume = {7},
  number = {12},
  pages = {5--16},
  url = {https://www150.statcan.gc.ca/n1/pub/75-001-x/11206/4168777-eng.htm},
  abstract = {Wealth provides access to economic resources. To mitigate the impact of unexpected expenses or income losses, those with a reserve of wealth can liquidate some of their financial or real assets. More positively, sufficient net worth allows the possibility to reduce work hours, make riskier investments, or try self-employment. On the other hand, lack of wealth makes these options less likely. Between 1984 and 1999, wealth inequality rose in Canada (Morissette, Zhang and Drolet 2002, 2006). In 1984, families and unattached individuals (hereafter referred to simply as families) in the top 10\% of the wealth distribution held 52\% of household wealth, excluding the value of employer-sponsored pension plans. Fifteen years later, they held 56\%, and in 2005, 58\%. Using the Assets and Debts Survey for 1984 and the Survey of Financial Security for 1999 and 2005, this article examines wealth distribution over the period from 1984 to 2005. Most of the analysis uses three different samples: all families, all families except those in the top 1\%, and all families except those in the top 5\%. Since the 1984 survey contained no information about employer-sponsored pensions, wealth, unless otherwise noted, excludes the value of work-related pension plans (see Data sources and definitions).},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality}
}

Wealth provides access to economic resources. To mitigate the impact of unexpected expenses or income losses, those with a reserve of wealth can liquidate some of their financial or real assets. More positively, sufficient net worth allows the possibility to reduce work hours, make riskier investments, or try self-employment. On the other hand, lack of wealth makes these options less likely. Between 1984 and 1999, wealth inequality rose in Canada (Morissette, Zhang and Drolet 2002, 2006). In 1984, families and unattached individuals (hereafter referred to simply as families) in the top 10% of the wealth distribution held 52% of household wealth, excluding the value of employer-sponsored pension plans. Fifteen years later, they held 56%, and in 2005, 58%. Using the Assets and Debts Survey for 1984 and the Survey of Financial Security for 1999 and 2005, this article examines wealth distribution over the period from 1984 to 2005. Most of the analysis uses three different samples: all families, all families except those in the top 1%, and all families except those in the top 5%. Since the 1984 survey contained no information about employer-sponsored pensions, wealth, unless otherwise noted, excludes the value of work-related pension plans (see Data sources and definitions).

@incollection{Morissetteetal2006,
  title = {The Evolution of Wealth Inequality in {{Canada}}, 1984--1999},
  booktitle = {International {{Perspectives}} on {{Household Wealth}}},
  author = {Morissette, Ren{\'e} and Zhang, Xuelin and Drolet, Marie},
  editor = {Wolff, Edward N.},
  year = {2006},
  month = oct,
  pages = {151--192},
  publisher = {Edward Elgar Publishing},
  address = {Cheltenham, UK},
  doi = {10.4337/9781847203175.00012},
  url = {https://doi.org/10.4337/9781847203175.00012},
  isbn = {978-1-84720-317-5},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality},
  chapter = {5}
}

@book{Tachibanaki2005,
  title = {Confronting Income Inequality in {{Japan}}},
  author = {Tachibanaki, Toshiaki},
  year = {2005},
  month = nov,
  publisher = {MIT Press},
  address = {Cambridge, MA},
  url = {https://mitpress.mit.edu/books/confronting-income-inequality-japan},
  abstract = {Contrary to general belief, and to Japan's own self-image, inequality of income and wealth distribution in Japan has grown in the past two decades. In this well-written and accessible book, Toshiaki Tachibanaki analyzes the movement toward more income inequality in Japan and offers policy recommendations to counter the trend. Tachibanaki, Japan's leading expert on income distribution, draws on new statistical data covering wealth, inheritance, farm and business holdings, salary, and other relevant factors, to demonstrate that Japan can no longer be thought of as a "90 percent middle-class society." The book, updated and substantially expanded from Tachibanaki's 1998 Japanese bestseller, discusses the history and the causes of Japan's increasing income inequality and analyzes the effect on wealth distribution of intergenerational transfer. Employing cross-national comparisons to the United States and Europe throughout, Confronting Income Inequality in Japan examines the contrast between equality of opportunity and equality of outcome, evaluates equality of opportunity in terms of education and occupation, analyzes the relationship between income distribution and income growth, discusses the role of hierarchical positions in organizations, and considers the differences between welfare states and nonwelfare states. Concluding with policy recommendations, Tachibanaki argues against the belief of some economists that greater inequality is unavoidable if Japan is to achieve a strong economic recovery.},
  isbn = {0-262-20158-5},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Estate Inheritance and Gift Taxes,Intergenerational Wealth,Methods of Estimation of Wealth Inequality,Trends in Aggregate Wealth and Wealth Inequality}
}

Contrary to general belief, and to Japan's own self-image, inequality of income and wealth distribution in Japan has grown in the past two decades. In this well-written and accessible book, Toshiaki Tachibanaki analyzes the movement toward more income inequality in Japan and offers policy recommendations to counter the trend. Tachibanaki, Japan's leading expert on income distribution, draws on new statistical data covering wealth, inheritance, farm and business holdings, salary, and other relevant factors, to demonstrate that Japan can no longer be thought of as a "90 percent middle-class society." The book, updated and substantially expanded from Tachibanaki's 1998 Japanese bestseller, discusses the history and the causes of Japan's increasing income inequality and analyzes the effect on wealth distribution of intergenerational transfer. Employing cross-national comparisons to the United States and Europe throughout, Confronting Income Inequality in Japan examines the contrast between equality of opportunity and equality of outcome, evaluates equality of opportunity in terms of education and occupation, analyzes the relationship between income distribution and income growth, discusses the role of hierarchical positions in organizations, and considers the differences between welfare states and nonwelfare states. Concluding with policy recommendations, Tachibanaki argues against the belief of some economists that greater inequality is unavoidable if Japan is to achieve a strong economic recovery.

@article{DeNardi2004,
  title = {Wealth Inequality and Intergenerational Links},
  author = {De Nardi, Mariacristina},
  year = {2004},
  journal = {The Review of Economic Studies},
  volume = {71},
  number = {3},
  pages = {743--768},
  doi = {10.1111/j.1467-937X.2004.00302.x},
  url = {https://doi.org/10.1111/j.1467-937X.2004.00302.x},
  abstract = {Previous work has had difficulty generating household saving behaviour that makes the distribution of wealth much more concentrated than that of labour earnings, and that makes the richest households hold onto large amounts of wealth, even during very old age. I construct a quantitative, general equilibrium, overlapping-generations model in which parents and children are linked by accidental and voluntary bequests and by earnings ability. I show that voluntary bequests can explain the emergence of large estates, while accidental bequests alone cannot, and that adding earnings persistence within families increases wealth concentration even more. I also show that the introduction of a bequest motive generates lifetime savings profiles more consistent with the data.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Methods of Estimation of Wealth Inequality}
}

Previous work has had difficulty generating household saving behaviour that makes the distribution of wealth much more concentrated than that of labour earnings, and that makes the richest households hold onto large amounts of wealth, even during very old age. I construct a quantitative, general equilibrium, overlapping-generations model in which parents and children are linked by accidental and voluntary bequests and by earnings ability. I show that voluntary bequests can explain the emergence of large estates, while accidental bequests alone cannot, and that adding earnings persistence within families increases wealth concentration even more. I also show that the introduction of a bequest motive generates lifetime savings profiles more consistent with the data.

@incollection{ScholzLevine2004,
  title = {U.{{S}}. {{Black-White}} Wealth Inequality},
  booktitle = {Social Inequality},
  author = {Scholz, John Karl and Levine, Kara},
  editor = {Neckerman, Kathryn M.},
  year = {2004},
  pages = {895--929},
  publisher = {Russell Sage Foundation},
  address = {New York},
  url = {https://muse.jhu.edu/chapter/285406},
  chapter = {Ch. 24},
  isbn = {978-1-61044-420-0},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

@book{Shapiro2004,
  title = {The Hidden Cost of Being {{African American}}: How Wealth Perpetuates Inequality},
  author = {Shapiro, Thomas M.},
  year = {2004},
  publisher = {Oxford University Press},
  address = {New York},
  url = {https://global.oup.com/ushe/product/the-hidden-cost-of-being-african-american-9780195181388},
  abstract = {Over the past three decades, racial prejudice in America has declined significantly and many African American families have seen a steady rise in employment and annual income. But alongside these encouraging signs, Thomas Shapiro argues in The Hidden Cost of Being African American, fundamental levels of racial inequality persist, particularly in the area of asset accumulation--inheritance, savings accounts, stocks, bonds, home equity, and other investments. Shapiro reveals how the lack of these family assets along with continuing racial discrimination in crucial areas like homeownership dramatically impact the everyday lives of many black families, reversing gains earned in schools and on jobs, and perpetuating the cycle of poverty in which far too many find themselves trapped. Shapiro uses a combination of in-depth interviews with almost 200 families from Los Angeles, Boston, and St. Louis, and national survey data with 10,000 families to show how racial inequality is transmitted across generations. We see how those families with private wealth are able to move up from generation to generation, relocating to safer communities with better schools and passing along the accompanying advantages to their children. At the same time those without significant wealth remain trapped in communities that don't allow them to move up, no matter how hard they work. Shapiro challenges white middle class families to consider how the privileges that wealth brings not only improve their own chances but also hold back people who don't have them. This "wealthfare" is a legacy of inequality that, if unchanged, will project social injustice far into the future. Showing that over half of black families fall below the asset poverty line at the beginning of the new century, The Hidden Cost of Being African American will challenge all Americans to reconsider what must be done to end racial inequality.},
  isbn = {978-0-19-518138-8},
  keywords = {Determinants of Wealth and Wealth Inequality,Impacts of Wealth Inequality,Intergenerational Wealth}
}

Over the past three decades, racial prejudice in America has declined significantly and many African American families have seen a steady rise in employment and annual income. But alongside these encouraging signs, Thomas Shapiro argues in The Hidden Cost of Being African American, fundamental levels of racial inequality persist, particularly in the area of asset accumulation–inheritance, savings accounts, stocks, bonds, home equity, and other investments. Shapiro reveals how the lack of these family assets along with continuing racial discrimination in crucial areas like homeownership dramatically impact the everyday lives of many black families, reversing gains earned in schools and on jobs, and perpetuating the cycle of poverty in which far too many find themselves trapped. Shapiro uses a combination of in-depth interviews with almost 200 families from Los Angeles, Boston, and St. Louis, and national survey data with 10,000 families to show how racial inequality is transmitted across generations. We see how those families with private wealth are able to move up from generation to generation, relocating to safer communities with better schools and passing along the accompanying advantages to their children. At the same time those without significant wealth remain trapped in communities that don't allow them to move up, no matter how hard they work. Shapiro challenges white middle class families to consider how the privileges that wealth brings not only improve their own chances but also hold back people who don't have them. This "wealthfare" is a legacy of inequality that, if unchanged, will project social injustice far into the future. Showing that over half of black families fall below the asset poverty line at the beginning of the new century, The Hidden Cost of Being African American will challenge all Americans to reconsider what must be done to end racial inequality.

@article{CharlesHurst2003,
  title = {The Correlation of Wealth across Generations},
  author = {Charles, Kerwin Kofi and Hurst, Erik},
  year = {2003},
  journal = {Journal of Political Economy},
  volume = {111},
  number = {6},
  pages = {1155--1182},
  doi = {10.1086/378526},
  url = {https://doi.org/10.1086/378526},
  abstract = {In this paper, we find that the age-adjusted elasticity of child wealth with respect to parental wealth is 0.37 before the transfer of bequests. Lifetime income and asset ownership jointly explain nearly two-thirds of the wealth elasticity. Education, past parental transfers, and expected future bequests account for little of the remaining elasticity. Survey measures of risk correlate strongly between parents and children. However, they explain little of the intergenerational similarity in the propensity to own different assets, suggesting that children's savings propensities are determined by mimicking their parents' behavior, or the inheritance of preferences not related to risk tolerance. Our results imply that while parents do pass on human capital and saving propensities to their children, the level of intergenerational fluidity is much greater than that suggested by recent accounts in the popular press.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

In this paper, we find that the age-adjusted elasticity of child wealth with respect to parental wealth is 0.37 before the transfer of bequests. Lifetime income and asset ownership jointly explain nearly two-thirds of the wealth elasticity. Education, past parental transfers, and expected future bequests account for little of the remaining elasticity. Survey measures of risk correlate strongly between parents and children. However, they explain little of the intergenerational similarity in the propensity to own different assets, suggesting that children's savings propensities are determined by mimicking their parents' behavior, or the inheritance of preferences not related to risk tolerance. Our results imply that while parents do pass on human capital and saving propensities to their children, the level of intergenerational fluidity is much greater than that suggested by recent accounts in the popular press.

@article{Wahl2003,
  title = {From Riches to Riches: Intergenerational Transfers and the Evidence from Estate Tax Returns},
  author = {Wahl, Jenny B.},
  year = {2003},
  journal = {Social Science Quarterly},
  volume = {84},
  number = {2},
  pages = {278--296},
  doi = {10.1111/1540-6237.8402004},
  url = {http://doi.org/10.1111/1540-6237.8402004},
  abstract = {Objective. Intergenerational transfers of wealth and ability can influence the distribution of wealth. This research examines the empirical relationships among intergenerational variables and cross-sectional wealth distribution. Methods. Models pioneered by Gary Becker set out the conditions necessary for regression to the mean in wealth across generations. However, empirical testing of such models has been incomplete because large, reliable, intergenerational data sets---especially with data from three generations---are hard to find. This article unveils a remarkable new source of intergenerationally linked data: federal estate tax records filed in Wisconsin from 1916 to 1981 and linked across three generations of families. Results. Wealth tends to regress to the mean at the top end of the distribution, but slowly. Consequently, wealth inequality in the United States is likely to persist. What is more, recent federal tax changes, particularly the repeal of the estate tax and the reduction in capital gains tax rates, will exacerbate cross-sectional wealth disparities. Conclusions. In the long run, intergenerational forces may help overcome inequalities in wealth across U.S. families. Empirical results suggest, however, that regression to the mean will occur quite slowly, and the long run could be long indeed.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality,Wealth Taxation}
}

Objective. Intergenerational transfers of wealth and ability can influence the distribution of wealth. This research examines the empirical relationships among intergenerational variables and cross-sectional wealth distribution. Methods. Models pioneered by Gary Becker set out the conditions necessary for regression to the mean in wealth across generations. However, empirical testing of such models has been incomplete because large, reliable, intergenerational data sets—especially with data from three generations—are hard to find. This article unveils a remarkable new source of intergenerationally linked data: federal estate tax records filed in Wisconsin from 1916 to 1981 and linked across three generations of families. Results. Wealth tends to regress to the mean at the top end of the distribution, but slowly. Consequently, wealth inequality in the United States is likely to persist. What is more, recent federal tax changes, particularly the repeal of the estate tax and the reduction in capital gains tax rates, will exacerbate cross-sectional wealth disparities. Conclusions. In the long run, intergenerational forces may help overcome inequalities in wealth across U.S. families. Empirical results suggest, however, that regression to the mean will occur quite slowly, and the long run could be long indeed.

@article{Laitner2002,
  title = {Wealth Inequality and Altruistic Bequests},
  author = {Laitner, John},
  year = {2002},
  journal = {American Economic Review},
  volume = {92},
  number = {2},
  eprint = {3083415},
  eprinttype = {jstor},
  pages = {270--273},
  doi = {10.1257/000282802320189384},
  url = {https://www.jstor.org/stable/3083415},
  abstract = {This paper examines the role of bequests and inter vivos gifts in the U.S. economy, considering their importance for the economy's (i) aggregate capital stock, (ii) distribution of private net worth, and (iii) public policy options. It focuses on several recent calibrated simulations.},
  keywords = {Intergenerational Wealth,Methods of Estimation of Wealth Inequality}
}

This paper examines the role of bequests and inter vivos gifts in the U.S. economy, considering their importance for the economy's (i) aggregate capital stock, (ii) distribution of private net worth, and (iii) public policy options. It focuses on several recent calibrated simulations.

@article{Wolff2002,
  title = {Inheritances and Wealth Inequality, 1989--1998},
  author = {Wolff, Edward N.},
  year = {2002},
  journal = {American Economic Review},
  volume = {92},
  number = {2},
  eprint = {3083413},
  eprinttype = {jstor},
  pages = {260--264},
  doi = {10.1257/000282802320189366},
  url = {https://www.jstor.org/stable/3083413},
  abstract = {The paper explores whether inheritances and other wealth transfers are, on net, equalizing or disequalizing with respect to current wealth holdings. The study makes use of the Survey of Consumer Finances for the United States over the 1989--1998 period. As far as I am aware, this is the first study on this question.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality}
}

The paper explores whether inheritances and other wealth transfers are, on net, equalizing or disequalizing with respect to current wealth holdings. The study makes use of the Survey of Consumer Finances for the United States over the 1989–1998 period. As far as I am aware, this is the first study on this question.

@article{Gokhaleetal2001,
  title = {Simulating the Transmission of Wealth Inequality via Bequests},
  author = {Gokhale, Jagadeesh and Kotlikoff, Laurence J. and Sefton, James and Weale, Martin},
  year = {2001},
  journal = {Journal of Public Economics},
  volume = {79},
  number = {1},
  pages = {93--128},
  doi = {10.1016/S0047-2727(00)00097-9},
  url = {https://doi-org.central.ezproxy.cuny.edu/10.1016/S0047-2727(00)00097-9},
  abstract = {This paper develops, calibrates, and simulates a dynamic 88-period OLG model to study the intergenerational transmission of U.S. wealth inequality via bequests. The model features marriage, realistic fertility patterns, random death, assortative mating based on skills, heterogeneous skill endowments, heterogeneous rates of return, skill inheritability, progressive income taxation, and resource annuitization via social security. All bequests arise from imperfect annuitization. Nonetheless, the model generates a realistic ratio of aggregate wealth to aggregate labor income, a realistic bequest flow relative to the stock of wealth, and a realistic wealth distribution at retirement. Skill differences, assortative mating, social security, and the time preference are the primary determinants of wealth inequality. Bequests do propagate wealth inequality, but only in the presence of social security, which disproportionately disinherits the lifetime poor. Intergenerational wealth immobility, also considered here, is primarily determined by the inheritance of skills from one's parents and the magnification of the impact of this inheritance by marital sorting.},
  keywords = {Intergenerational Wealth,Methods of Estimation of Wealth Inequality}
}

This paper develops, calibrates, and simulates a dynamic 88-period OLG model to study the intergenerational transmission of U.S. wealth inequality via bequests. The model features marriage, realistic fertility patterns, random death, assortative mating based on skills, heterogeneous skill endowments, heterogeneous rates of return, skill inheritability, progressive income taxation, and resource annuitization via social security. All bequests arise from imperfect annuitization. Nonetheless, the model generates a realistic ratio of aggregate wealth to aggregate labor income, a realistic bequest flow relative to the stock of wealth, and a realistic wealth distribution at retirement. Skill differences, assortative mating, social security, and the time preference are the primary determinants of wealth inequality. Bequests do propagate wealth inequality, but only in the presence of social security, which disproportionately disinherits the lifetime poor. Intergenerational wealth immobility, also considered here, is primarily determined by the inheritance of skills from one's parents and the magnification of the impact of this inheritance by marital sorting.

@article{Laitner2001,
  title = {Secular Changes in Wealth Inequality and Inheritance},
  author = {Laitner, John},
  year = {2001},
  journal = {The Economic Journal},
  volume = {111},
  number = {474},
  pages = {691--721},
  doi = {10.1111/1468-0297.00656},
  url = {https://doi.org/10.1111/1468-0297.00656},
  abstract = {Data suggest that the distribution of wealth among households in the USA and UK has become more equal over the last century, though, at least for the USA, the pattern may have reversed recently. This paper shows that a model in which all households save for life-cycle reasons and some for dynastic purposes as well offers a possible or partial explanation: the model predicts rising cross-sectional equality of wealth when longevity increases. There may also be implications about very recent changes: expansion of social security programmes and government deficits can lead toward more wealth inequality. Slower growth may do the same.},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Impacts of Wealth Inequality,Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality}
}

Data suggest that the distribution of wealth among households in the USA and UK has become more equal over the last century, though, at least for the USA, the pattern may have reversed recently. This paper shows that a model in which all households save for life-cycle reasons and some for dynastic purposes as well offers a possible or partial explanation: the model predicts rising cross-sectional equality of wealth when longevity increases. There may also be implications about very recent changes: expansion of social security programmes and government deficits can lead toward more wealth inequality. Slower growth may do the same.

@incollection{DaviesShorrocks2000,
  title = {The Distribution of Wealth},
  booktitle = {Handbook of Income Distribution},
  author = {Davies, James B. and Shorrocks, Anthony F.},
  editor = {Atkinson, Anthony B. and Bourguignon, Fran{\c c}ois},
  year = {2000},
  volume = {1},
  pages = {605--675},
  publisher = {Elsevier},
  doi = {10.1016/S1574-0056(00)80014-7},
  url = {https://doi.org/10.1016/S1574-0056(00)80014-7},
  abstract = {This chapter is concerned with the distribution of personal wealth, which usually refers to the material assets that can be sold in the marketpace, although on occasion pension rights are also included. We summarise the available evidence on wealth distribution for a number of countries. This confirms the well known fact that wealth is more unequally distributed than income, and points to a long term downward trend in wealth inequality over most of the twentieth century. We also review the various theories that help account for these feature. Lifecycle accumulation is one popular explanation of wealth differences, but inheritance is also widely recognised as playing a major role, especially at the upper end of the wealth range. A recurrent theme in work on wealth distribution is the relative importance of these two sources of wealth differences. We discuss the results of studies that assess the contributions of inheritance and lifecycle factors, and give attention also to a variety of related issues, such as the link between wealth status across generations, and the possible motives for leaving bequests.},
  isbn = {978-0-444-81631-3},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Intergenerational Wealth},
  chapter = {11}
}

This chapter is concerned with the distribution of personal wealth, which usually refers to the material assets that can be sold in the marketpace, although on occasion pension rights are also included. We summarise the available evidence on wealth distribution for a number of countries. This confirms the well known fact that wealth is more unequally distributed than income, and points to a long term downward trend in wealth inequality over most of the twentieth century. We also review the various theories that help account for these feature. Lifecycle accumulation is one popular explanation of wealth differences, but inheritance is also widely recognised as playing a major role, especially at the upper end of the wealth range. A recurrent theme in work on wealth distribution is the relative importance of these two sources of wealth differences. We discuss the results of studies that assess the contributions of inheritance and lifecycle factors, and give attention also to a variety of related issues, such as the link between wealth status across generations, and the possible motives for leaving bequests.

@article{MenchikJianakoplos1997,
  title = {Black-White Wealth Inequality: Is Inheritance the Reason?},
  author = {Menchik, Paul L. and Jianakoplos, Nancy Ammon},
  year = {1997},
  journal = {Economic Inquiry},
  volume = {35},
  number = {2},
  pages = {428--442},
  publisher = {John Wiley \& Sons, Ltd (10.1111)},
  doi = {10.1111/j.1465-7295.1997.tb01920.x},
  url = {https://doi.org/10.1111/j.1465-7295.1997.tb01920.x},
  abstract = {Racial differences in the receipt of financial inheritances help to explain why the average difference in wealth between black and white households is larger than the average difference in income. Using data from a panel of prime-aged males and from a representative survey of the U,S. population, we document the greater likelihood of white households receiving an inheritance than black households. Controlling for other factors which contribute to racial differences in wealth, we estimate that financial inheritances may account for between 10\% and 20\% of the average difference in black-white household wealth.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

Racial differences in the receipt of financial inheritances help to explain why the average difference in wealth between black and white households is larger than the average difference in income. Using data from a panel of prime-aged males and from a representative survey of the U,S. population, we document the greater likelihood of white households receiving an inheritance than black households. Controlling for other factors which contribute to racial differences in wealth, we estimate that financial inheritances may account for between 10% and 20% of the average difference in black-white household wealth.

@article{Smith1997,
  title = {Wealth Inequality among Older Americans},
  author = {Smith, James P.},
  year = {1997},
  journal = {The Journals of Gerontology Series B},
  volume = {52B},
  pages = {74--81},
  doi = {10.1093/geronb/52B.Special_Issue.74},
  url = {https://doi.org/10.1093/geronb/52B.Special_Issue.74},
  abstract = {Using the AHEAD study, this article examines the wealth distribution among American households with a member at least 70 years old. Household wealth is quite unevenly distributed among older American households. Those households in the top 10th percentile of the wealth distribution have 2,500 times as much wealth as those at the lowest 10th percent. This sharp wealth disparity relative to income dispersion is the dominant reason why older minority households have accumulated so little wealth compared to White households. Wealth varies by a factor of seven to one when both spouses are in poor health compared to when they say that they are in excellent health. Finally, AHEAD data on bequest intentions suggest a bifurcated bequest motive. Most older households plan to bequeath a modest financial inheritance, but about one-quarter expect to leave inheritances worth \$100,000 or more.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Wealth Taxation}
}

Using the AHEAD study, this article examines the wealth distribution among American households with a member at least 70 years old. Household wealth is quite unevenly distributed among older American households. Those households in the top 10th percentile of the wealth distribution have 2,500 times as much wealth as those at the lowest 10th percent. This sharp wealth disparity relative to income dispersion is the dominant reason why older minority households have accumulated so little wealth compared to White households. Wealth varies by a factor of seven to one when both spouses are in poor health compared to when they say that they are in excellent health. Finally, AHEAD data on bequest intentions suggest a bifurcated bequest motive. Most older households plan to bequeath a modest financial inheritance, but about one-quarter expect to leave inheritances worth $100,000 or more.

@article{GaleScholz1994,
  title = {Intergenerational Transfers and the Accumulation of Wealth},
  author = {Gale, William G and Scholz, John Karl},
  year = {1994},
  journal = {Journal of Economic Perspectives},
  volume = {8},
  number = {4},
  pages = {145--160},
  doi = {10.1257/jep.8.4.145},
  url = {http://doi.org/10.1257/jep.8.4.145},
  abstract = {This paper uses household data to provide direct estimates of intergenerational transfers as a source of wealth. The authors distinguish between intended transfers (for example, gifts to other households) and possibly unintended transfers (bequests) and estimate that intended transfers account for at least 20 percent of net worth. Thus, a significant portion of the U.S. wealth cannot be explained by the life-cycle model, even when the model is augmented to allow for bequests. Estimated bequests can account for an additional 31 percent of net worth. The authors also show that transfers among living people are about half as large as bequests.},
  keywords = {Intergenerational Wealth}
}

This paper uses household data to provide direct estimates of intergenerational transfers as a source of wealth. The authors distinguish between intended transfers (for example, gifts to other households) and possibly unintended transfers (bequests) and estimate that intended transfers account for at least 20 percent of net worth. Thus, a significant portion of the U.S. wealth cannot be explained by the life-cycle model, even when the model is augmented to allow for bequests. Estimated bequests can account for an additional 31 percent of net worth. The authors also show that transfers among living people are about half as large as bequests.

@article{JoulfaianWilhelm1994,
  title = {Inheritance and Labor Supply},
  author = {Joulfaian, David and Wilhelm, Mark O.},
  year = {1994},
  journal = {The Journal of Human Resources},
  volume = {29},
  number = {4},
  pages = {1205--1234},
  doi = {10.2307/146138},
  url = {https://doi.org/10.2307/146138},
  abstract = {Using data from the Michigan Panel Study of Income Dynamics and from Federal Estate Tax returns, this paper investigates the labor disincentive caused by inheritance. The results are of interest for several reasons. Whether or not inheritances are a strong labor disincentive figures prominently in the controversy surrounding the relative importance of inheritances and life-cycle savings as sources of U.S. wealth. Also, the size of the disincentive is important in determining the relationship between inheritance and inequality. Our results indicate that inheritances do not lead to large reductions in the labor supply of men and married women. Family consumption increases after an inheritance, but again the effect is small.},
  keywords = {Intergenerational Wealth}
}

Using data from the Michigan Panel Study of Income Dynamics and from Federal Estate Tax returns, this paper investigates the labor disincentive caused by inheritance. The results are of interest for several reasons. Whether or not inheritances are a strong labor disincentive figures prominently in the controversy surrounding the relative importance of inheritances and life-cycle savings as sources of U.S. wealth. Also, the size of the disincentive is important in determining the relationship between inheritance and inequality. Our results indicate that inheritances do not lead to large reductions in the labor supply of men and married women. Family consumption increases after an inheritance, but again the effect is small.

@article{Holtz-Eakinetal1993,
  title = {The Carnegie Conjecture: Some Empirical Evidence},
  author = {{Holtz-Eakin}, D. and Joulfaian, D. and Rosen, H. S.},
  year = {1993},
  journal = {The Quarterly Journal of Economics},
  volume = {108},
  number = {2},
  pages = {413--435},
  doi = {10.2307/2118337},
  url = {https://doi.org/10.2307/2118337},
  abstract = {This paper examines tax-return-generated data on the labor force behavior of people before and after they receive inheritances. The results are consistent with Andrew Carnegie's century-old assertion that large inheritances decrease a person's labor force participation. For example, a single person who receives an inheritance of about \$150,000 is roughly four times more likely to leave the labor force than a person with an inheritance below \$25,000. Additional, albeit weaker, evidence suggest that large inheritances depress labor supply, even when participation is unaltered.},
  keywords = {Intergenerational Wealth}
}

This paper examines tax-return-generated data on the labor force behavior of people before and after they receive inheritances. The results are consistent with Andrew Carnegie's century-old assertion that large inheritances decrease a person's labor force participation. For example, a single person who receives an inheritance of about $150,000 is roughly four times more likely to leave the labor force than a person with an inheritance below$25,000. Additional, albeit weaker, evidence suggest that large inheritances depress labor supply, even when participation is unaltered.

@article{Modigliani1988,
  title = {The Role of Intergenerational Transfers and Life Cycle Saving in the Accumulation of Wealth},
  author = {Modigliani, Franco},
  year = {1988},
  journal = {Journal of Economic Perspectives},
  volume = {2},
  number = {2},
  pages = {15--40},
  doi = {10.1257/jep.2.2.15},
  url = {http://doi.org/10.1257/jep.2.2.15},
  abstract = {The purpose of this paper is to review what economists know at present about the following question: How large a portion of the existing wealth is the result of a bequest motive, that is, of accumulation for the specific purpose of leaving bequests? But first I will clarify why an answer to this question is of interest.},
  keywords = {Intergenerational Wealth,Methods of Estimation of Wealth Inequality}
}

The purpose of this paper is to review what economists know at present about the following question: How large a portion of the existing wealth is the result of a bequest motive, that is, of accumulation for the specific purpose of leaving bequests? But first I will clarify why an answer to this question is of interest.

@article{KotlikoffSummers1981,
  title = {The Role of Intergenerational Transfers in Aggregate Capital Accumulation},
  author = {Kotlikoff, Laurence J. and Summers, Lawrence H.},
  year = {1981},
  journal = {Journal of Political Economy},
  volume = {89},
  number = {4},
  pages = {706--732},
  doi = {10.1086/260999},
  url = {https://doi.org/10.1086/260999},
  abstract = {This paper uses historical U.S. data to directly estimate the contribution of intergenerational transfers to aggregate capital accumulation. The evidence presented indicates that intergenerational transfers account for the vast majority of aggregate U.S. capital formation; only a negligible fraction of actual capital accumulation can be traced to life-cycle or "hump" savings. A major difference between this study and previous investigations of this issue is the use of more accurate longitudinal age-earnings and age-consumption profiles. These profiles are simply too flat to generate substantial life-cycle savings. This paper suggests the importance of and need for substantially greater research and data collection on intergenerational transfers. Life-cycle models of savings that emphasize savings for retirement as the dominant form of capital accumulation should give way to models that illuminate the determinants of intergenerational transfers.},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}

This paper uses historical U.S. data to directly estimate the contribution of intergenerational transfers to aggregate capital accumulation. The evidence presented indicates that intergenerational transfers account for the vast majority of aggregate U.S. capital formation; only a negligible fraction of actual capital accumulation can be traced to life-cycle or "hump" savings. A major difference between this study and previous investigations of this issue is the use of more accurate longitudinal age-earnings and age-consumption profiles. These profiles are simply too flat to generate substantial life-cycle savings. This paper suggests the importance of and need for substantially greater research and data collection on intergenerational transfers. Life-cycle models of savings that emphasize savings for retirement as the dominant form of capital accumulation should give way to models that illuminate the determinants of intergenerational transfers.

@article{Kennedy1980,
  title = {Reviewed Work: Inheritance and Wealth Inequality in Britain by {{C}}. {{D}}. Harbury and {{D}}. {{M}}. {{W}}. {{N}}. Hitchens},
  author = {Kennedy, William P.},
  year = {1980},
  journal = {The Economic History Review},
  volume = {33},
  number = {4},
  pages = {636--638},
  doi = {10.2307/2594821},
  url = {https://doi.org/10.2307/2594821},
  keywords = {Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality,Wealth Taxation}
}

@book{Pondetal1980,
  title = {Taxing Wealth Inequalities},
  author = {Pond, C. and Burghes, L. and Smith, B.},
  year = {1980},
  month = jan,
  series = {Fabian {{Tract}}},
  number = {466},
  publisher = {Fabian Society},
  url = {https://digital.library.lse.ac.uk/objects/lse:dir903zoz},
  urldate = {2022-02-02},
  isbn = {978-0-7163-0466-1},
  keywords = {Cross-National Comparisons,Determinants of Wealth and Wealth Inequality,Estate Inheritance and Gift Taxes,Intergenerational Wealth,Wealth Taxation}
}

@book{HarburyHitchens1979,
  title = {Inheritance and Wealth Inequality in {{Britain}}},
  author = {Harbury, C. D. and Hitchens, D. M. W. N.},
  year = {1979},
  publisher = {London},
  doi = {10.4324/9780203145319},
  url = {https://doi.org/10.4324/9780203145319},
  abstract = {Modern Britain is characterised by marked inequalities in the distribution of wealth, which continue to fuel controversy and arouse strong, if adverse, feelings. Originally published in 1979, Inheritance and Wealth Inequality in Britain provides detailed evidence on the relative importance of inherited and self-made wealth. It is the first major work in the field since Wedgwood's pioneering study in 1929, and represents a major contribution to current debates on justice and inequality. The study is based on more than fifteen years of detective work on successive generations of the wealthy. Professors Harbury and Hitchens have searched through the public records of registered wills, contacted relatives, executors and solicitors and have even tramped through graveyards in order to build up their picture of how wealth is actually transmitted from generation to generation. Results of this research challenge the commonly held view that inheritance is no longer a main force in the perpetuation of wealth and demonstrate unquestionably that it remains a factor of paramount importance. The book helps to answer such questions as: what proportion of wealthy men and wealthy women are self-made? Do the rich tend to marry the rich? Which industries tend to favour self-made as against inherited wealth? What are the chances today of inheriting or dissipating a fortune? Inheritance and Wealth Inequality in Britain is essential reading for those academically and professionally concerned with policymaking on income and wealth distribution and with the tax system; and to students taking courses in welfare economics, public finance and the sociology of class. It is also an important contribution to the history of modern Britain.},
  isbn = {978-0-415-69474-2},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Methods of Estimation of Wealth Inequality}
}

Modern Britain is characterised by marked inequalities in the distribution of wealth, which continue to fuel controversy and arouse strong, if adverse, feelings. Originally published in 1979, Inheritance and Wealth Inequality in Britain provides detailed evidence on the relative importance of inherited and self-made wealth. It is the first major work in the field since Wedgwood's pioneering study in 1929, and represents a major contribution to current debates on justice and inequality. The study is based on more than fifteen years of detective work on successive generations of the wealthy. Professors Harbury and Hitchens have searched through the public records of registered wills, contacted relatives, executors and solicitors and have even tramped through graveyards in order to build up their picture of how wealth is actually transmitted from generation to generation. Results of this research challenge the commonly held view that inheritance is no longer a main force in the perpetuation of wealth and demonstrate unquestionably that it remains a factor of paramount importance. The book helps to answer such questions as: what proportion of wealthy men and wealthy women are self-made? Do the rich tend to marry the rich? Which industries tend to favour self-made as against inherited wealth? What are the chances today of inheriting or dissipating a fortune? Inheritance and Wealth Inequality in Britain is essential reading for those academically and professionally concerned with policymaking on income and wealth distribution and with the tax system; and to students taking courses in welfare economics, public finance and the sociology of class. It is also an important contribution to the history of modern Britain.

@article{Menchik1979,
  title = {Inter-Generational Transmission of Inequality: An Empirical Study of Wealth Mobility},
  author = {Menchik, Paul L.},
  year = {1979},
  journal = {Economica},
  volume = {46},
  number = {184},
  pages = {349--362},
  doi = {10.2307/2553676},
  url = {http://doi.org/10.2307/2553676},
  abstract = {Although much research has been done on the intra-generational distribution of income and wealth, much less work has been done on inter-generational effects; research in both areas is needed for a complete understanding of the subject. In addition to the study of factors that determine the size distribution of income and wealth, economists should also be interested in the degree of inter-generational mobility that is exhibited in an economy: the extent to which there is "equal opportunity" for children whose parents' economic position is dissimilar. This issue of mobility is clearly distinct from the issue of equality. For any degree of inequality we can have a relatively static society in which children always assume their parents' position, or a highly mobile society in which the position of the child is unrelated to that of his parents. The degree of inter-generational mobility is determined by market, institutional and genetic factors, among others. The systems that provide education and care for children, distribute public expenditures and transmit material inheritance all influence mobility across generations. This paper presents empirical estimates of the relationship between the material wealth held by parents and that held by their children in the United States. The line of research pursued here was in part inspired by the work of Harbury (1962). The data comes from probate records and therefore records wealth-holding at a specific point in the life-cycle i.e. at d},
  keywords = {Intergenerational Wealth}
}

Although much research has been done on the intra-generational distribution of income and wealth, much less work has been done on inter-generational effects; research in both areas is needed for a complete understanding of the subject. In addition to the study of factors that determine the size distribution of income and wealth, economists should also be interested in the degree of inter-generational mobility that is exhibited in an economy: the extent to which there is "equal opportunity" for children whose parents' economic position is dissimilar. This issue of mobility is clearly distinct from the issue of equality. For any degree of inequality we can have a relatively static society in which children always assume their parents' position, or a highly mobile society in which the position of the child is unrelated to that of his parents. The degree of inter-generational mobility is determined by market, institutional and genetic factors, among others. The systems that provide education and care for children, distribute public expenditures and transmit material inheritance all influence mobility across generations. This paper presents empirical estimates of the relationship between the material wealth held by parents and that held by their children in the United States. The line of research pursued here was in part inspired by the work of Harbury (1962). The data comes from probate records and therefore records wealth-holding at a specific point in the life-cycle i.e. at d

@article{Harburyetal1977,
  title = {On the Measurement of Inherited Wealth},
  author = {Harbury, Colin D. and Hitchens, David M. and McMahon, Patrick C.},
  year = {1977},
  journal = {Review of Income and Wealth},
  volume = {23},
  number = {3},
  pages = {309--314},
  doi = {10.1111/j.1475-4991.1977.tb00020.x},
  url = {https://doi.org/10.1111/j.1475-4991.1977.tb00020.x},
  abstract = {This paper aims to compare two possible measure of inherited wealth in Great Britain. One is computed by relating the size of estates left by wealth leavers in a particular year with the size of estates of their fathers. The present authors have used this measure in an attempt to throw some light on the importance of inheritance for a sample of top wealth leavers dying in the 1950s and 1960s in the country. The second measure presented in this paper introduces time into the comparison. In part I of this article the authors describe the sample data, and the results of the previous research, part II compares the growth rate criterion with the results of the previous research, and in part III the results of these research are discussed.},
  keywords = {Intergenerational Wealth,Methods of Estimation of Wealth Inequality}
}

This paper aims to compare two possible measure of inherited wealth in Great Britain. One is computed by relating the size of estates left by wealth leavers in a particular year with the size of estates of their fathers. The present authors have used this measure in an attempt to throw some light on the importance of inheritance for a sample of top wealth leavers dying in the 1950s and 1960s in the country. The second measure presented in this paper introduces time into the comparison. In part I of this article the authors describe the sample data, and the results of the previous research, part II compares the growth rate criterion with the results of the previous research, and in part III the results of these research are discussed.

@article{Blinder1973,
  title = {A Model of Inherited Wealth},
  author = {Blinder, Alan S.},
  year = {1973},
  journal = {The Quarterly Journal of Economics},
  volume = {87},
  number = {4},
  pages = {608--626},
  doi = {10.2307/1882027},
  url = {https://doi.org/10.2307/1882027},
  abstract = {The many vexing questions in the theory of income distribution can be usefully dichotomized into two groups. An intragenerational model of income distribution takes as given the distributions of inherited wealth and abilities ("human wealth," if you will) and studies the factors that explain how the current distribution of income (or wealth) is derived. An intergenerational model, by contrast, concentrates on the transmission of net worth and human capital across generations. The present paper deals with one important aspect of the latter problem--i.e., how is the distribution of inherited wealth determined? This question has received almost no attention in the economic literature. Josiah Stamp's lament that "scientific economic inquiry into the subject of inheritance... has thus been very scanty" is as true in 1973 as it was in 1926. The present model, combined with some model of the intergenerational transmission of human capital, would "close the loop" between the income distribution of one generation and the income distribution among its heirs.},
  keywords = {Intergenerational Wealth}
}

The many vexing questions in the theory of income distribution can be usefully dichotomized into two groups. An intragenerational model of income distribution takes as given the distributions of inherited wealth and abilities ("human wealth," if you will) and studies the factors that explain how the current distribution of income (or wealth) is derived. An intergenerational model, by contrast, concentrates on the transmission of net worth and human capital across generations. The present paper deals with one important aspect of the latter problem–i.e., how is the distribution of inherited wealth determined? This question has received almost no attention in the economic literature. Josiah Stamp's lament that "scientific economic inquiry into the subject of inheritance... has thus been very scanty" is as true in 1973 as it was in 1926. The present model, combined with some model of the intergenerational transmission of human capital, would "close the loop" between the income distribution of one generation and the income distribution among its heirs.

@book{Atkinson1972,
  title = {Unequal Shares: Wealth in {{Britain}}},
  author = {Atkinson, A. B.},
  year = {1972},
  publisher = {Allen Lane},
  address = {London},
  url = {https://archive.org/details/unequalshareswea0000atki},
  isbn = {0-7139-0281-7},
  keywords = {Determinants of Wealth and Wealth Inequality,Estate Inheritance and Gift Taxes,Intergenerational Wealth,Methods of Estimation of Wealth Inequality,Trends in Aggregate Wealth and Wealth Inequality,Wealth Taxation}
}

@article{Atkinson1971a,
  title = {The Distribution of Wealth and the Individual Life-Cycle},
  author = {Atkinson, A. B.},
  year = {1971},
  journal = {Oxford Economic Papers},
  volume = {23},
  number = {2},
  eprint = {2662236},
  eprinttype = {jstor},
  pages = {239--254},
  publisher = {Oxford University Press},
  url = {https://www.jstor.org/stable/2662236},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Wealth Taxation}
}

@inproceedings{LansingSonquist1969,
  title = {A Cohort Analysis of Changes in the Distribution of Wealth},
  booktitle = {Six Papers on the Size Distribution of Wealth and Income},
  author = {Lansing, John B. and Sonquist, John},
  year = {1969},
  pages = {31--74},
  publisher = {NBER},
  url = {http://www.nber.org/chapters/c4340},
  chapter = {Ch. 2},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality},
  annotation = {Backup Publisher: National Bureau of Economic Research}
}

@book{Wedgwood1939,
  title = {The Economics of Inheritance},
  author = {Wedgwood, Josiah},
  year = {1939},
  edition = {2nd Editio},
  publisher = {Penguin Books},
  abstract = {With a new introduction by the author},
  keywords = {Determinants of Wealth and Wealth Inequality,Estate Inheritance and Gift Taxes,Impacts of Wealth Inequality,Intergenerational Wealth}
}

With a new introduction by the author

@book{Wedgwood1929,
  title = {The Economics of Inheritance},
  author = {Wedgwood, Josiah},
  year = {1929},
  publisher = {Routledge \& Sons},
  url = {https://archive.org/details/economicsofinher035213mbp/page/n1/mode/2up},
  keywords = {Determinants of Wealth and Wealth Inequality,Estate Inheritance and Gift Taxes,Impacts of Wealth Inequality,Intergenerational Wealth}
}

@article{Wedgwood1928,
  title = {The Influence of Inheritance on the Distribution of Wealth},
  author = {Wedgwood, J.},
  year = {1928},
  journal = {The Economic Journal},
  volume = {38},
  number = {149},
  pages = {38--55},
  doi = {10.2307/2224395},
  url = {https://doi.org/10.2307/2224395},
  keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth}
}