Whether and how much intergenerational transfers contribute to wealth inequality is still subject to debate. This column analyses household survey data on inheritance and gifts inter vivos in France, Germany, Great Britain, Ireland, Italy, Spain, and the US to relate current household wealth levels and inequality to the receipt of intergenerational wealth transfers. In these countries, large transfers increase overall wealth inequality. Strengthening taxation capacity and instating lifetime capital acquisitions tax for gifts and inheritances may help counter the dis-equalising effect of intergenerational transfers.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2020). 'The intergenerational transmission of wealth in rich countries'. VoxEU CEPR Blog Post, 19 September 2020. Retrieved from: https://voxeu.org/article/intergenerational-transmission-wealth-rich-countries