Inheritance and equal opportunity – it is the family that matters
https://doi.org/10.3326/pse.44.4.2 | Published online: December 1, 2020 Figure 1
Net wealth across age by heirs and non-heirs Figure 2
Attitudes towards getting rich and wealth taxation (in %) Figure 3
Attitude toward getting rich through work across income by heirs and non-heirs Figure 4
Class location across the distribution of net wealth Figure 5
Share of heirs across class (in %) Note: The overall share of heirs amounts to 37.9% of all households. Source: HFCS Austria 2017. Figure 6
Attitude towards inheritance taxation across class (in %) Source: HFCS Austria 2017. Table 1
Inheritance received and inheritance expected across class (Austria)
Figure 7
Distributions of wealth with and without inheritance across class Notes: (i) This graph shows the cumulative distribution functions of wealth as well as the CDFs of wealth without inherited wealth of renters, owners and capitalists in the euro area. Both are normalized with the overall median of net wealth. (ii) To produce wealth without inheritance, inherited main residences as well as the 3 largest other potential inheritances of the household were considered. To estimate a present value an average yearly nominal interest rate of 6% was used. We use this assumption because there are no time series of consumer price indices available for all countries that are long enough for the construction of meaningful real interest rates. However, they likely translate to real interest rates of 2 to 4%. The sum of present values of all inheritances was subtracted from net wealth to obtain wealth without inherited wealth. Source: HFCS Austria 2014. Figure 8
Attitude towards inheritance tax and family exemptions Figure A1
Functions of wealth
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December, 2020 IV/2020 |
