On the retirement effect of inheritance: Heterogeneity and the role of risk aversion

Arbeitspapier

This paper provides new insights on the effect of inheritance receipt on retirement. We build on lifelong information on inheritances received and labor market transitions available for respondents of the French Wealth Survey. This feature allows us to compare current retirement rates among current and future inheritors. Chances of current retirement are 40% higher among current inheritors than among individuals who will inherit in the next two years, but there is substantial heterogeneity in this effect across socio-demographic groups. The effect is also stronger for individuals with a higher risk aversion, which we interpret with a simple theoretical model.

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• ISBN: 978-92-899-3484-8
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 2222

Classification and Topics

• Classification: Wirtschaft ; Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination ; Retirement; Retirement Policies
• Subject: Retirement ; inheritance ; labor supply ; risk aversion

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Garbinti, Bertrand ; Georges-Kot, Simon
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2019

Further information

• DOI: doi:10.2866/213835
• Handle: http://hdl.handle.net/10419/208256