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Labour Supply after Inheritances and the Role of Expectations

Karina Doorley () and Nico Pestel ()

Oxford Bulletin of Economics and Statistics, 2020, vol. 82, issue 4, 843-863

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.

Date: 2020
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https://doi.org/10.1111/obes.12353

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Working Paper: Labour Supply after Inheritances and the Role of Expectations (2016) Downloads
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Oxford Bulletin of Economics and Statistics is currently edited by Christopher Adam, Anindya Banerjee, Christopher Bowdler, David Hendry, Adriaan Kalwij, John Knight and Jonathan Temple

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