Parental Allocations to Children: New Evidence on Bequest Differences Among Siblings
21 Pages Posted: 14 Apr 2002
Date Written: February 2002
We use new survey-based data on siblings to assess the potential role of bequests in either redistributing income among siblings or affecting offspring behavior as implied by prominent models. The data are not focused on the upper tail of the wealth distribution and include both own and sib reports on own bequests and on sib's bequests, enabling the use of a flexible measurement model. Our results indicate that bequests are received by almost two-thirds of eligible decedents, average bequest amounts are a significant fraction of annual earnings, and there are significant differences between siblings with respect to schooling, earnings, and visits with parents. However, there are not significant sib differences in bequests once measurement error is incorporated into the analysis.
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