Compensatory inter vivos gifts
Stefan Hochguertel () and
Henry Ohlsson ()
No 31, Working Papers in Economics from University of Gothenburg, Department of Economics
Empirical studies of intergenerational transfers usually find that bequests are equally divided among heirs while inter vivos gifts tend to be compensatory. Using the 1992 and 1994 waves of the Health and Retirement Study, we find that only 4% of parents who give, divide their gifts equally among their children. Estimating probit models, using family panels, we find that gifts are compensatory in the sense that a child is more likely to receive a gift if she works fewer hours and has lower income than than her brothers and sisters. These results carry over to the amounts given. Fixed effects Tobit estimations show that the fewer hours a child works and the lower her income is, the more the parents give. Gifts are compensatory. The empirical results are, therefore, consistent with the predictions of the altruistic model of intergenerational transfers.
Keywords: inter vivos gifts; altruism; compensatory transfers (search for similar items in EconPapers)
JEL-codes: D10 D64 D91 (search for similar items in EconPapers)
Pages: 39 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34) Track citations by RSS feed
Published in Journal of Applied Econometrics, 2009, pages 993-1023.
Downloads: (external link)
Journal Article: Compensatory inter vivos gifts (2009)
Working Paper: Compensatory Inter Vivos Gifts (2007)
Working Paper: Compensatory Inter Vivos Gifts (2001)
Working Paper: Inter Vivos Gifts: Compensatory or Equal Sharing? (2000)
Working Paper: Compensatory inter vivos gifts (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hhs:gunwpe:0031
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers in Economics from University of Gothenburg, Department of Economics Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Ann-Christin Räätäri Nyström ().