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The Impact of Intergenerational Transfers on Household Wealth Inequality in Japan and the United States

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  • Niimi, Yoko
  • Horioka, Charles Yuji

Abstract

To help shed light on the implications of intergenerational transfers for wealth inequality, this paper examines whether or not individuals who receive intergenerational transfers from their parents are more likely to leave bequests to their children than those who do not using data for Japan and the United States. The estimation results show that the receipt of intergenerational transfers from parents and/or parents-in-law increases the likelihood of individuals' leaving bequests to their own children in both Japan and the United States, which in turn is likely to contribute to the persistence or widening of wealth disparities. However, such a tendency is found to be stronger among less better-off households in both countries, and this may help alleviate the disequalizing effect of intergenerational transfers on the distribution of wealth, at least to some extent.

Suggested Citation

  • Niimi, Yoko & Horioka, Charles Yuji, 2016. "The Impact of Intergenerational Transfers on Household Wealth Inequality in Japan and the United States," AGI Working Paper Series 2016-20, Asian Growth Research Institute.
    • Handle: RePEc:agi:wpaper:00000117
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    Cited by:

    1. Yoko Niimi, 2018. "Do borrowing constraints matter for intergenerational educational mobility? Evidence from Japan," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(4), pages 628-656, October.
    2. Petar Peshev & Kristina Stefanova & Ivanina Mancheva, 2023. "Wealth Inequality Determinants in the EU Members from the CEE Region, 1995-2021," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 19-40.

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    More about this item

    Keywords

    bequests; education; inheritances; intergenerational transfers; inter vivos transfers; wealth distribution; wealth inequality;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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