Inheritance and Saving

24 Pages Posted: 19 Jun 2006

See all articles by David Joulfaian

David Joulfaian

U.S. Department of the Treasury, Office of Tax Analysis (OTA); Georgetown University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: June 2006


This paper explores the effects of inheritances on the saving of recipients. Information on inheritances and heirs are obtained from estate tax records of decedents which are linked to the income tax records of beneficiaries. The observed pattern of wealth mobility within less than two years of the receipt of inheritances and multivariate analyses show that wealth increases by less than the full amount of the inheritance received. Similarly, and consistent with previous findings, large inheritances are found to depress labor force participation.

Keywords: Inheritance, saving, consumption, labor supply

JEL Classification: E21, E24, D12

Suggested Citation

Joulfaian, David, Inheritance and Saving (June 2006). Available at SSRN: or

David Joulfaian (Contact Author)

U.S. Department of the Treasury, Office of Tax Analysis (OTA) ( email )

1500 Pennsylvania Ave. NW
Washington, DC 20220
United States

Georgetown University - Department of Economics ( email )

37th St NW & O St NW
Washington, DC 20007
United States

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