The timing of intergenerational transfers and household wealth: too little, too late?

Vivien Burrows () and Chris Lennartz
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Vivien Burrows: Department of Economics, University of Reading
Chris Lennartz: University of Amsterdam

No em-dp2021-11, Economics Discussion Papers from Department of Economics, University of Reading

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: Intergenerational transfers; household wealth; cumulative advantage effects; lifecycle effects (search for similar items in EconPapers)
JEL-codes: D12 D31 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2021-05-24
New Economics Papers: this item is included in nep-eur
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