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Intergenerational wealth mobility and the role of inheritance: Evidence from multiple generations

Adrian Adermon, Mikael Lindahl () and Daniel Waldenström ()
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Daniel Waldenström: Paris School of Economics, Postal: Paris School of Economics, , 48 Boulevard Jourdan, , 75014 Paris, , France., http://www.uueconomics.se/danielw

No 2018:8, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This study estimates intergenerational correlations in mid-life wealth across three generations, and a young fourth generation, and examines how much of the parent-child association that can be explained by inheritances. Using a Swedish data set we find parent-child rank correlations of 0.3–0.4 and grandparents-grandchild rank correlations of 0.1–0.2. Conditional on parents’ wealth, grandparents’ wealth is weakly positively associated with grandchild’s wealth and the parent-child correlation is basically unchanged if we control for grandparents’ wealth. Bequests and gifts strikingly account for at least 50 per cent of the parent-child wealth correlation while earnings and education are only able to explain 25 per cent.

Keywords: multigenerational mobility; bequests; mid-life wealth (search for similar items in EconPapers)
JEL-codes: D31 J62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-eur and nep-lab
Date: 2018-05-09
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Related works:
Journal Article: Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations (2018) Downloads
Working Paper: Intergenerational wealth mobility and the role of inheritance: Evidence from multiple generations (2016) Downloads
Working Paper: Intergenerational wealth mobility and the role of inheritance: Evidence from multiple generations (2016) Downloads
Working Paper: Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations (2016) Downloads
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