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Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations

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  • Adrian Adermon
  • Mikael Lindahl
  • Daniel Waldenström

Abstract

This study estimates intergenerational wealth correlations across up to four generations and examines the degree to which the wealth association between parents and children can be explained by inheritances. Using a Swedish data set with newly hand‐collected data on wealth and bequests, we find parent‐child rank correlations of 0.3–0.4 and grandparent–grandchild rank correlations of 0.1–0.2. Bequests and gifts appear to be central in this process, accounting for at least half of the parent–child wealth correlation while earnings and education can account for only a quarter.

Suggested Citation

  • Adrian Adermon & Mikael Lindahl & Daniel Waldenström, 2018. "Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations," Economic Journal, Royal Economic Society, vol. 128(612), pages 482-513, July.
  • Handle: RePEc:wly:econjl:v:128:y:2018:i:612:p:f482-f513
    DOI: 10.1111/ecoj.12535
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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