Intergenerational Transfers in the Health and Retirement Study Data

37 Pages Posted: 18 Nov 2010

See all articles by John Laitner

John Laitner

University of Michigan at Ann Arbor - Department of Economics

Amanda Sonnega

University of Michigan at Ann Arbor - Survey Research Center

Date Written: November 1, 2010

Abstract

Many economic analyses of public policy issues are based upon the life-cycle model of household behavior. The usual formulation omits private intergenerational transfers. This paper considers the possibility of a more sophisticated formulation that includes the latter. We examine 1992-2008 HRS data on inheritances and inter vivos gifts. We uncover an underreporting problem in the data: a household’s financial respondent often seems to understate transfers from his/her in-laws. Nevertheless, other aspects of the data seem very useful. About 30-40 percent of households eventually inherit. Inheritances seem to reflect a mixture of intentional and accidental bequests, with the latter twice as prevalent.

Suggested Citation

Laitner, John P. and Sonnega, Amanda, Intergenerational Transfers in the Health and Retirement Study Data (November 1, 2010). Michigan Retirement Research Center Research Paper No. 2010-238, Available at SSRN: https://ssrn.com/abstract=1710726 or http://dx.doi.org/10.2139/ssrn.1710726

John P. Laitner (Contact Author)

University of Michigan at Ann Arbor - Department of Economics ( email )

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Amanda Sonnega

University of Michigan at Ann Arbor - Survey Research Center ( email )

Ann Arbor, MI
United States
734-615-4589 (Phone)
734-615-2180 (Fax)

HOME PAGE: http://www.mrrc.isr.umich.edu/

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