Bequests and the Accumulation of Wealth in the Eurozone

Publikation: Working/Discussion PaperWU Working Paper

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Abstract

This paper empirically compares the contribution of the two major wealth accumulation factors earned income and inheritances to the net wealth position of households in the Eurozone. The elasticities of both wealth sources differ considerably across countries and are overly non-linear. Depending on the position in the wealth distribution, an increase of one percentile in the income distribution corresponds to 0.1-0.6 percentiles in the net wealth distribution. We find substantially stronger effects for inheritances vis--vis income. In Greece, Portugal, and Austria, households have to climb around three percentiles in the income distribution to compensate a one percentile increase in the inheritance distribution. The findings clearly suggest that bequests play a stronger role in wealth accumulation than earned income.
OriginalspracheEnglisch
PublikationsstatusVeröffentlicht - 2016

Publikationsreihe

NameINEQ Working Paper Series
Nr.1

Österreichische Systematik der Wissenschaftszweige (ÖFOS)

  • 502010 Finanzwissenschaft
  • 502025 Ökonometrie
  • 502046 Volkswirtschaftspolitik
  • 507016 Regionalökonomie

WU Working Paper Reihe

  • INEQ Working Paper Series

Schlagwörter

  • INEQ Income & Wealth
  • INEQ Taxes & Welfare State

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