Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82532
Authors: 
Elinder, Mikael
Erixson, Oscar
Ohlsson, Henry
Year of Publication: 
2011
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2011:5
Abstract: 
The objective of this paper is to study when and how much labor supply and savings of heirs respond to inheritances. We estimate fixed effects models following direct heirs, inheriting in 2004, during the years 2000 - 2008 using Swedish panel data. Our first main result is that the more the heir inherits, the lower her labor income becomes. This labor supply effect appears in the years after the heir had inherited. We also find evidence of anticipation effects that occur before the actual transfer. Our second main result is that the more the heir inherits, the higher her capital income becomes. This savings effect only appears in the years after receiving the inheritance. It disappears after a couple of years.
Subjects: 
inheritances
bequests
windfall gains
labor supply
capital income
uncertainty
JEL: 
D10
D80
D91
J22
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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