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Wealth inequality, intergenerational transfers, and family background
[Intergenerational wealth mobility and the role of inheritance: Evidence from multiple generations]

Author

Listed:
  • Juan C Palomino
  • Gustavo A Marrero
  • Brian Nolan
  • Juan G Rodríguez

Abstract

We estimate the contribution of intergenerational transfers (inheritances and gifts) and family background to wealth inequality in four OECD countries: France, Spain, Great Britain, and the USA. We compare the observed wealth distribution with a non-parametric counterfactual distribution where all differences in wealth associated with intergenerational transfers and family background are removed. Despite the diversity of the countries analysed, we find similar patterns. The combined contribution of intergenerational transfers and family background to wealth inequality is sizeable in the four countries, ranging from 36% in Great Britain to 49% in the USA. When interactions between the two factors are accounted for, and the Shapley value decomposition is used to fully disentangle the contribution of each factor based on its marginal contribution, intergenerational transfers account for between 26% in Great Britain and 36% of wealth inequality in France, with family background ranging from 9% in France to 17% in the USA.

Suggested Citation

  • Juan C Palomino & Gustavo A Marrero & Brian Nolan & Juan G Rodríguez, 2022. "Wealth inequality, intergenerational transfers, and family background [Intergenerational wealth mobility and the role of inheritance: Evidence from multiple generations]," Oxford Economic Papers, Oxford University Press, vol. 74(3), pages 643-670.
    • Handle: RePEc:oup:oxecpp:v:74:y:2022:i:3:p:643-670.
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    File URL: http://hdl.handle.net/10.1093/oep/gpab052
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    Cited by:

    1. Paul Gregg & Ricky Kanabar, 2022. "Parental homeownership and education: the implications for offspring wealth inequality in GB," CEPEO Working Paper Series 22-01, UCL Centre for Education Policy and Equalising Opportunities, revised Jul 2023.
    2. Loïa Lamarque & Marion Leturcq, 2025. "United We Give, Divided We Keep: Intra-Couple Wealth Inequality and Inter vivos Gift Transfers," Working Papers 306, French Institute for Demographic Studies.
    3. Brian Nolan & Juan C. Palomino & Philippe Van Kerm & Salvatore Morelli, 2022. "Intergenerational wealth transfers in Great Britain from the Wealth and Assets Survey in comparative perspective," Fiscal Studies, John Wiley & Sons, vol. 43(2), pages 179-199, June.
    4. Daniel Kolář, 2025. "Wealth survey calibration using income tax data," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 32(3), pages 741-781, June.
    5. Marcin Wroński, 2022. "Household wealth in Central and Eastern Europe Explaining the wealth gap between Poland and Hungary," Bank i Kredyt, Narodowy Bank Polski, vol. 53(5), pages 443-474.
    6. Blanchet, Thomas & Martínez-Toledano, Clara, 2023. "Wealth inequality dynamics in europe and the united states: Understanding the determinants," Journal of Monetary Economics, Elsevier, vol. 133(C), pages 25-43.
    7. repec:eee:ehbiol:v:47:y:2022:i:c:s1570677x22000727 is not listed on IDEAS
    8. Morelli, Salvatore & Nolan, Brian & Palomino, Juan C. & Van Kerm, Philippe, 2025. "Corrigendum to “The influence of inheritances on wealth inequality in rich countries”. [J. Public Econ. 247 (2025) 105398]," Journal of Public Economics, Elsevier, vol. 252(C).
    9. Kanabar, Ricky & Gregg, Paul, 2022. "Intergenerational wealth transmission and mobility in Great Britain: what components of wealth matter?," ISER Working Paper Series 2022-02, Institute for Social and Economic Research.
    10. Bavaro, Michele & Boscolo, Stefano & Tedeschi, Simone, 2024. "Simulating Long-Run Wealth Distribution and Transmission: The Role of Intergenerational Transfers," INET Oxford Working Papers 2024-01, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    11. Ma tre, Bertrand & Curristan, Sarah & Russell, Sarah, 2022. "Intergenerational poverty in Ireland," Research Series, Economic and Social Research Institute (ESRI), number RS150.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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