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Inter vivos transfers and bequests in three OECD countries

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  • Ernesto Villanueva

Abstract

"Reforms reducing the generosity of pensions have distributional effects on future generations if individuals care about their descendants' welfare, but only affect elderly individuals if bequests are the unintentional result of precautionary savings. And safety-net programmes such as unemployment insurance may displace sources of private help, such as that provided by living parents to their children in need. This paper provides comparable measures of how expected bequests and transfers vary with cumulated parental earnings in the United States, West Germany and the United Kingdom. The strength of bequest motives is empirically very weak in the available data. Private inter vivos transfers, which appear to depend on the recipients' economic situation, are partly crowded out by public unemployment insurance programmes. Together, involuntary bequests and intentional inter vivos transfers appear to be an important channel of intergenerational inequality transmission, and strengthen substantially the relationship between an individual's and his parents' economic status." Copyright � CEPR, CES, MSH, 2005.

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Bibliographic Info

Article provided by CEPR & CES & MSH in its journal Economic Policy.

Volume (Year): 20 (2005)
Issue (Month): 43 (07)
Pages: 505-565

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Handle: RePEc:bla:ecpoli:v:20:y:2005:i:43:p:505-565

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References

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Cited by:
  1. Juan Mora & Ana Moro-Egido, 2012. "Analyzing motives for money-transfers within families: the role of transfers for education," Empirical Economics, Springer, vol. 43(1), pages 357-378, August.
  2. Edwin S. Wong, 2013. "Gender preference and transfers from parents to children: an inter-regional comparison," International Review of Applied Economics, Taylor & Francis Journals, vol. 27(1), pages 61-80, January.
  3. Andaluz, Joaquín & Marcén, Miriam & Molina, José Alberto, 2007. "Income Transfers, Welfare and Family Decisions," IZA Discussion Papers 2804, Institute for the Study of Labor (IZA).

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