Inheritance, bequests, and labor supply

Donald Cox ()

IZA World of Labor, 2014, No 69, 69

Abstract: Inheriting money can be a problem since the new wealth might sap the beneficiaries’ incentive to work. Or it could do the opposite, by facilitating entrepreneurship among those whose ambition to start a business had been stymied by a lack of cash. Recent evidence suggests inheritance-related work disincentives can be strong—unexpected inheritances can matter a lot for early retirement, for example. But where inheritances facilitate self-employment, as some evidence suggests, the labor supply might increase.

Keywords: inheritance; bequests; labor supply; estate tax; self-employment (search for similar items in EconPapers)
JEL-codes: J2 L26 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (5)

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