Key Findings Details
Long-Run Determinants of Intergenerational Transfers
John Karl Scholz, Ananth Seshadri and Kamil Sicinski
· We use the Wisconsin Longitudinal Study to analyze the impact of transfer patterns on wealth accumulation.
· We look at transfers over a long time period, informed by different theories of transfer behavior, as well as how cognitive skills and other attributes earlier in the life-cycle influence transfer and saving behavior later on in life.
· Long-term transfers are less equally distributed across siblings than short-term transfers and the sum of transfers and inheritances is less equally distributed than transfers and inheritances alone.
· Transfers from parents-in-law are positive but statistically insignificantly correlated with the amount of transfers received from one’s own parents.
· Inter-vivos transfers from parents are not affected by transfers from parents-in-law.
· We find a strong positive association between the incidence of giving to own children and having received a gift from own parents, conditional on income and net worth.