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Recent trends in the size and the distribution of inherited wealth in the UK

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  • Karagiannaki, Eleni

Abstract

In this paper we use HMRC estate statistics and micro-data from four UK household surveys to examine changes in the size, the composition and the distribution of inherited wealth in the UK over the period 1985-2010. Our findings indicate that the period under examination is characterised by a substantial increase in the flow of inheritance. This increase, which was particularly marked in the early 2000s, was mainly driven by the rise in house prices and to a lesser extent by the increase in the proportion of inheritances which included housing assets. The distribution of inheritance amongst recipients became more unequal over this period. However, the inequality-increasing effect from the greater dispersion in the distribution of inheritance was counterbalanced by the increase in the percentage of the population who received an inheritance, resulting in a small decrease in the inequality of inheritance for the population overall. Analysis of the distribution of inheritance by socio-economic status suggests a positive association between inheritance and socio-economic status with some suggestive evidence that this association might have strengthened over time. Overall, however, the value of inheritance for most people is rather small and the differences across groups rather moderate.

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  • Karagiannaki, Eleni, 2015. "Recent trends in the size and the distribution of inherited wealth in the UK," LSE Research Online Documents on Economics 59949, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:59949
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    File URL: http://eprints.lse.ac.uk/59949/
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    Cited by:

    1. Hongyao Wei & Zhengyi Yang, 2022. "The Impact of Inheritance on the Distribution of Wealth: Evidence from China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(1), pages 234-262, March.
    2. Mauricio De Rosa, 2022. "Accumulation, inheritance and wealth distribution: first estimates of the untold half," Documentos de Trabajo (working papers) 22-07, Instituto de Economía - IECON.
    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. Cummins, Neil & Ó Gráda, Cormac, 2022. "The Irish in England," Economic History Working Papers 115497, London School of Economics and Political Science, Department of Economic History.
    5. Bee Boileau & David Sturrock, 2023. "Who gives and receives substantial financial transfers in Britain?," IFS Working Papers W23/08, Institute for Fiscal Studies.
    6. Haywood, Luke, 2016. "Wealth effects on job preferences," Labour Economics, Elsevier, vol. 38(C), pages 1-11.
    7. Cummins, Neil & Ó Gráda, Cormac, 2022. "The Irish in England," CEPR Discussion Papers 17439, C.E.P.R. Discussion Papers.
    8. Haywood, Luke, 2016. "Wealth effects on job preferences," Labour Economics, Elsevier, vol. 38(C), pages 1-11.

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    More about this item

    Keywords

    inheritance; wealth; intergenerational transfers; inequality;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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