Quotation Humer, Stefan, Moser, Mathias, Schnetzer, Matthias. 2016. Bequests and the Accumulation of Wealth in the Eurozone. INEQ Working Paper Series 1.


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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.

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  • INEQ Taxes & Welfare State
  • INEQ Income & Wealth

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Bequests and the Accumulation of Wealth in the Eurozone
Title of whole publication INEQ Working Paper Series 1
Year 2016
URL http://epub.wu.ac.at/id/eprint/4841

Associations

People
Humer, Stefan (Details)
Moser, Mathias (Details)
Schnetzer, Matthias (Details)
Organization
Economics of Inequality FI (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5300 Economics (Details)
5311 Public finance (Details)
5323 Econometrics (Details)
5341 Economic policy (Details)
5618 Regional economy (Details)
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