Inheritance and Saving

25 Pages Posted: 8 Oct 2006 Last revised: 24 Jan 2007

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: October 2006

Abstract

This paper explores the effects of inheritances on the saving of recipients. Information on inheritances and heirs is obtained from estate tax records of decedents which are linked to the income tax records of beneficiaries. The observed pattern of wealth mobility within 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.

Suggested Citation

Joulfaian, David, Inheritance and Saving (October 2006). NBER Working Paper No. w12569. Available at SSRN: https://ssrn.com/abstract=934764

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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