Abstract

This paper empirically compares the contribution of the two major wealth accumulation factors - earned income and inheritances - to the net wealth position of households in the Eurozone. The elasticities of both wealth sources differ considerably across countries and are overly non-linear. Depending on the position in the wealth distribution, an increase of one percentile in the income distribution corresponds to 0.1-0.6 percentiles in the net wealth distribution. We find substantially stronger effects for inheritances vis-á-vis income. In Greece, Portugal, and Austria, households have to climb around three percentiles in the income distribution to compensate a one percentile increase in the inheritance distribution. The findings clearly suggest that bequests play a stronger role in wealth accumulation than earned income.

Download PDF

Kontakt

• Stefan HUMER
  E-​Mail: stefan.humer@wu.ac.at
   

• Mathias MOSER
  Tel.: +43 (1) 313 36 - 5481
  E-​Mail: mathias.moser@wu.ac.at
  MEHR
   

• Matthias SCHNETZER
  E-​Mail: matthias.schnetzer@akwien.at