On the Retirement Effect of Inheritance: Heterogeneity and the Role of Risk Aversion

Bertrand Garbinti and Simon Georges-Kot

Working papers from Banque de France

Abstract: 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. For instance, the effect turns out to be stronger effects for part-time workers and for individuals who are neither white collar workers nor executives. The effect is also stronger for individuals with a higher risk aversion, which we interpret with a simple theoretical model.

Keywords: Retirement; Inheritance; Labor Supply; Risk Aversion (search for similar items in EconPapers)
JEL-codes: J14 J26 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: On the retirement effect of inheritance: heterogeneity and the role of risk aversion (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:707

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