Inheritance and Saving
24 Pages Posted: 19 Jun 2006
There are 2 versions of this paper
Inheritance and Saving
Inheritance and Saving
Date Written: June 2006
Abstract
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: Suggested Citation
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