Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145260
Authors: 
Adermon, Adrian
Lindahl, Mikael
Waldenström, Daniel
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 10126
Abstract: 
This study estimates intergenerational correlations in mid-life wealth across three generations, and a young fourth generation, and examines how much of the parent-child association that can be explained by inheritances. Using a Swedish data set we find parent-child rank correlations of 0.3–0.4 and grandparents-grandchild rank correlations of 0.1–0.2. Conditional on parents' wealth, grandparents' wealth is weakly positively associated with grandchild's wealth and the parent-child correlation is basically unchanged if we control for grandparents' wealth. Bequests and gifts strikingly account for at least 50 per cent of the parent-child wealth correlation while earnings and education are only able to explain 25 per cent.
Subjects: 
multigenerational mobility
bequests
mid-life wealth
JEL: 
D31
J62
Document Type: 
Working Paper

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