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What role for “generational wealth” in explaining racial wealth disparities?

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  • John Sabelhaus
  • Jeffrey Thompson

Abstract

In light of recent interest in “generational wealth” and its potential to close racial disparities in wealth, this paper revisits an older literature with updated and improved data and methods. Relative to past research, this paper uses more recent data (through 2019) that includes a wider range of retirement assets and recovers intergenerational transfers not reflected in prior research. Despite these innovations, our findings are consistent with earlier research that intergenerational transfers can account for a relatively small share of the racial disparities in wealth that we observe in the data.

Suggested Citation

  • John Sabelhaus & Jeffrey Thompson, 2026. "What role for “generational wealth” in explaining racial wealth disparities?," Economic Inquiry, Western Economic Association International, vol. 64(1), pages 325-349, January.
    • Handle: RePEc:bla:ecinqu:v:64:y:2026:i:1:p:325-349
    DOI: 10.1111/ecin.70034
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