The Impact of Intergenerational Transfers on Household Wealth Inequality in Japan and the United States

33 Pages Posted: 27 Sep 2016

See all articles by Yoko Niimi

Yoko Niimi

Doshisha University; Asian Growth Research Institute

Charles Yuji Horioka

Kobe University; National Bureau of Economic Research; Asian Growth Research Institute; Osaka University

Multiple version iconThere are 3 versions of this paper

Date Written: September 27, 2016

Abstract

To help shed light on the implications of intergenerational transfers for wealth inequality, this paper examines whether or not individuals who receive intergenerational transfers from their parents are more likely to leave bequests to their children than those who do not using data for Japan and the United States. The estimation results show that the receipt of intergenerational transfers from parents and/or parents-in-law increases the likelihood of individuals’ leaving bequests to their own children in both Japan and the United States, which in turn is likely to contribute to the persistence or widening of wealth disparities. However, such a tendency is found to be stronger among less better-off households in both countries, and this may help alleviate the disequalizing effect of intergenerational transfers on the distribution of wealth, at least to some extent.

Keywords: bequests, education, inheritances, intergenerational transfers, inter vivos transfers, wealth distribution, wealth inequality

JEL Classification: D10, D31, D64, E21, I24

Suggested Citation

Niimi, Yoko and Horioka, Charles Yuji, The Impact of Intergenerational Transfers on Household Wealth Inequality in Japan and the United States (September 27, 2016). ISER Discussion Paper No. 980, Available at SSRN: https://ssrn.com/abstract=2844051 or http://dx.doi.org/10.2139/ssrn.2844051

Yoko Niimi (Contact Author)

Doshisha University ( email )

Imadegawa-agaru, Shinmachi-dori, Kamigyo-ku
Kyoto, Kyoto 602-0047
Japan

Asian Growth Research Institute ( email )

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Charles Yuji Horioka

Kobe University ( email )

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National Bureau of Economic Research ( email )

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Asian Growth Research Institute ( email )

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Japan

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Osaka University ( email )

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