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

32 Pages Posted: 6 Jul 2018

See all articles by Adrian Adermon

Adrian Adermon

Uppsala University

Daniel Waldenström

Research Institute of Industrial Economics (IFN)

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Date Written: July 2018

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

Adermon, Adrian and Waldenström, Daniel, Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations (July 2018). The Economic Journal, Vol. 128, Issue 612, pp. F482-F513, 2018, Available at SSRN: https://ssrn.com/abstract=3209007 or http://dx.doi.org/10.1111/ecoj.12535

Adrian Adermon (Contact Author)

Uppsala University ( email )

Box 513
Uppsala, 751 20
Sweden

Daniel Waldenström

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

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