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Inheritance and equal opportunity - it is the family that matters

Author

Listed:
  • Pirmin Fessler

    (Oesterreichische Nationalbank, Vienna, Austria)

  • Martin Scherz

    (Oesterreichische Nationalbank, Vienna, Austria)

Abstract

Inheritance fundamentally violates the meritocratic justice principle of society. Despite the high level of wealth concentration and the fact that few people would be affected, political support for an inheritance tax is rather low. The topic of inheritance is not only about wealth but about values. We combine both by using questions in the Austrian Household Finance and Consumption Survey tailored to examine family values. The main aim of the paper is to bring sociological concepts and perceptions into the economic analysis of the role of inheritance in wealth distribution. We find several inconsistencies in people’s perceptions concerning the relation of inheritance to issues of social justice. We argue that family values are decisive for negative perceptions of inheritance taxation. Our empirical evidence suggests that in order to understand the resistance to inheritance taxation in society better, family values have to be taken into account. The main aim of the paper is to deliver empirical evidence for bringing an interdisciplinary approach, including sociological concepts, into economic analysis when analysing the relationship between inheritance, wealth and taxation.

Suggested Citation

  • Pirmin Fessler & Martin Scherz, 2020. "Inheritance and equal opportunity - it is the family that matters," Public Sector Economics, Institute of Public Finance, vol. 44(4), pages 463-482.
    • Handle: RePEc:ipf:psejou:v:44:y:2020:i:4:p:463-482
    DOI: 10.3326/pse.44.4.2
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    References listed on IDEAS

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    1. Edward N. Wolff & Ajit Zacharias, 2013. "Class structure and economic inequality," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 37(6), pages 1381-1406.
    2. Knut Wicksell, 1958. "A New Principle of Just Taxation," International Economic Association Series, in: Richard A. Musgrave & Alan T. Peacock (ed.), Classics in the Theory of Public Finance, pages 72-118, Palgrave Macmillan.
    3. Pirmin Fessler & Martin Schürz, 2018. "The functions of wealth: renters, owners and capitalists across Europe and the United States," Working Papers 223, Oesterreichische Nationalbank (Austrian Central Bank).
    4. Pirmin Fessler & Martin Schürz, 2018. "Private Wealth Across European Countries: The Role of Income, Inheritance and the Welfare State," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 19(4), pages 521-549, October.
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    Cited by:

    1. Stefan Jestl, 2021. "Inheritance tax regimes: a comparison," Public Sector Economics, Institute of Public Finance, vol. 45(3), pages 363-385.
    2. Schratzenstaller, Margit, 2025. "Behavioral responses to inheritance taxation – A review of the empirical literature," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 238-260.

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    More about this item

    Keywords

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    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • B50 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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