Arbeitspapier

Intergenerational wealth mobility and the role of inheritance: Evidence from multiple generations

This study estimates intergenerational correlations in mid-life wealth across three generations, and a young fourth generation, and examines how much of the parent-child association that can be explained by inheritances. Using a Swedish data set we find parent-child rank correlations of 0.3-0.4 and grandparents-grandchild rank correlations of 0.1-0.2. Conditional on parents' wealth, grandparents' wealth is weakly positively associated with grandchild's wealth and the parent-child correlation is basically unchanged if we control for grandparents' wealth. Bequests and gifts strikingly account for at least 50 per cent of the parent-child wealth correlation while earnings and education are only able to explain 25 per cent.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2018:8

Classification
Wirtschaft
Personal Income, Wealth, and Their Distributions
Job, Occupational, and Intergenerational Mobility; Promotion
Subject
multigenerational mobility
bequests
mid-life wealth

Event
Geistige Schöpfung
(who)
Adermon, Adrian
Lindahl, Mikael
Waldenström, Daniel
Event
Veröffentlichung
(who)
Institute for Evaluation of Labour Market and Education Policy (IFAU)
(where)
Uppsala
(when)
2018

Handle
Last update
20.09.2024, 8:23 AM CEST

Data provider

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Object type

  • Arbeitspapier

Associated

  • Adermon, Adrian
  • Lindahl, Mikael
  • Waldenström, Daniel
  • Institute for Evaluation of Labour Market and Education Policy (IFAU)

Time of origin

  • 2018

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