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Inheritance, gifts and the accumulation of wealth for low-income households
2021
Abstract: Many low-income households in rich countries have very little wealth, but the role of intergenerational wealth transmission in underpinning this deficit is not known. This article seeks to fill that gap by investigating patterns of past wealth transfer receipt for low-income versus other households in seven rich countries and assessing the contribution that these transfers, or their absence, make to current wealth levels. We find that households on low incomes are relatively disadvantaged in terms of intergenerational transfers received in the past, both in terms of the likelihood of having received any and the amounts received by those who do benefit from such transfers. The role that this disadvantage plays in the linkage between current low-income and low wealth is assessed and evidence presented that it is significant. Simulation of a universal wealth transfer scheme or ‘capital endowment’ on reaching adulthood for two countries shows that such a policy could lead to a marked decline in the proportion of low-income adults with negative or no wealth. This and alternative or complementary policy responses to these wealth deficits merit the most serious attention.
| Type: | Journal article |
| Theme(s): | Wealth accumulation and wealth inequality Poverty and social exclusion |
| Keywords: | capital endowment, inheritance, poverty, wealth |
| 10.1177/09589287211040419 |
Reference
Morelli, S., Nolan, B., Palomino, J.C. & Van Kerm, P. (2021), 'Inheritance, gifts and the accumulation of wealth for low-income households', Journal of European Social Policy, 31(5), 533-548.
@ARTICLE{pvk-761,
Author = {Morelli, Salvatore and Nolan, Brian and Palomino, Juan C. and Van Kerm, Philippe},
Title = {Inheritance, gifts and the accumulation of wealth for low-income households},
Journal = {Journal of European Social Policy},
Volume = {31},
Number = {5},
Pages = {533-548},
Year = {2021}
}Download links
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Morelli, S., Nolan, B., Palomino, J.C. & Van Kerm, P. (2021), 'Inheritance, Gifts, and the Wealth Deficit of Low-Income Households', .
Dataset(s) used in the paper
Other papers using the same datasets...
Lekfuangfu, W.N., Olivera, J. & Van Kerm, P. (2026), 'Bequest division: The roles of parental motives and children’s gender composition', Labour Economics, 10295.
Morelli, S., Nolan, B., Palomino, J.C. & Van Kerm, P. (2025), 'The influence of inheritances on wealth inequality in rich countries', Journal of Public Economics, 247(C), 105398.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2022), 'The wealth (disadvantage) of single-parent households', Annals of the American Academy of Political and Social Science, 702(1), 188-204.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2021), 'Intergenerational wealth transfers and wealth inequality in rich countries: What do we learn from Gini decomposition?', Economics Letters, 199, 10970.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2020), 'The Wealth of Families: The Intergenerational Transmission of Wealth in Britain in Comparative Perspective', Report to the Nuffield Foundation, Institute for New Economic Thinking, Oxford Martin School, University of Oxford.
Chauvel, L., Hartung, A., Bar-Haim, E. & Van Kerm, P. (2019), 'Income and Wealth Above the Median: New Measurements and Results for Europe and the United States', in K. Decancq & P. Van Kerm, What Drives Inequality?, Research on Economic Inequality27, Emerald Publishing Ltd, Bingley, pp.89-104.
Nolan, B., Morelli, S. & Van Kerm, P. (2018), 'Wealth Inequality', in B. Nolan, Generating Prosperity for Working Families in Affluent Countries, Oxford University Press, Oxford, UK, Ch.12, pp.312-334.
Carpantier, J.-F., Olivera, J. & Van Kerm, P. (2018), 'Macroprudential policy and household wealth inequality', Journal of International Money and Finance, 85(C), 262-277.
Cowell, F.A., Nolan, B., Olivera, J. & Van Kerm, P. (2017), 'Wealth, Top Incomes, and Inequality', in K. Hamilton & C. Hepburn, National Wealth: What is Missing, Why it Matters, Oxford University Press, Oxford, UK, Ch.8, pp.175-203.
Cowell, F.A. & Van Kerm, P. (2015), 'Wealth Inequality: A Survey', Journal of Economic Surveys, 29(4), 671-710.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2022), 'Intergenerational wealth transfers in Great Britain from the Wealth and Assets Survey in comparative perspective', Fiscal Studies, 43(2), 179-199.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2022), 'The wealth (disadvantage) of single-parent households', Annals of the American Academy of Political and Social Science, 702(1), 188-204.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2021), 'Intergenerational wealth transfers and wealth inequality in rich countries: What do we learn from Gini decomposition?', Economics Letters, 199, 10970.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2020), 'The Wealth of Families: The Intergenerational Transmission of Wealth in Britain in Comparative Perspective', Report to the Nuffield Foundation, Institute for New Economic Thinking, Oxford Martin School, University of Oxford.
Chauvel, L., Hartung, A., Bar-Haim, E. & Van Kerm, P. (2019), 'Income and Wealth Above the Median: New Measurements and Results for Europe and the United States', in K. Decancq & P. Van Kerm, What Drives Inequality?, Research on Economic Inequality27, Emerald Publishing Ltd, Bingley, pp.89-104.
Nolan, B., Morelli, S. & Van Kerm, P. (2018), 'Wealth Inequality', in B. Nolan, Generating Prosperity for Working Families in Affluent Countries, Oxford University Press, Oxford, UK, Ch.12, pp.312-334.
Morelli, S., Nolan, B., Palomino, J.C. & Van Kerm, P. (2025), 'The influence of inheritances on wealth inequality in rich countries', Journal of Public Economics, 247(C), 105398.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2022), 'Intergenerational wealth transfers in Great Britain from the Wealth and Assets Survey in comparative perspective', Fiscal Studies, 43(2), 179-199.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2022), 'The wealth (disadvantage) of single-parent households', Annals of the American Academy of Political and Social Science, 702(1), 188-204.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2020), 'The Wealth of Families: The Intergenerational Transmission of Wealth in Britain in Comparative Perspective', Report to the Nuffield Foundation, Institute for New Economic Thinking, Oxford Martin School, University of Oxford.
Nolan, B., Morelli, S. & Van Kerm, P. (2018), 'Wealth Inequality', in B. Nolan, Generating Prosperity for Working Families in Affluent Countries, Oxford University Press, Oxford, UK, Ch.12, pp.312-334.
Other papers on the same theme(s)
Olivera, J., Schokkaert, E. & Van Kerm, P. (2026), 'The role of information in eliciting support for inheritance taxation: experimental evidence from Luxembourg', International Tax and Public Finance.
Lekfuangfu, W.N., Olivera, J. & Van Kerm, P. (2026), 'Bequest division: The roles of parental motives and children’s gender composition', Labour Economics, 10295.
Morelli, S., Nolan, B., Palomino, J.C. & Van Kerm, P. (2025), 'The influence of inheritances on wealth inequality in rich countries', Journal of Public Economics, 247(C), 105398.
Chauvel, L., Bar-Haim, E., Hartung, A. & Van Kerm, P. (2024), 'Increasing Inequality in Joint Income and Wealth Distributions in the United States, 1995 to 2013', Luxembourg Wealth Study Working Paper 46, LIS Cross-National Data Center, Esch/Alzette, Luxembourg.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2022), 'Intergenerational wealth transfers in Great Britain from the Wealth and Assets Survey in comparative perspective', Fiscal Studies, 43(2), 179-199.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2022), 'The wealth (disadvantage) of single-parent households', Annals of the American Academy of Political and Social Science, 702(1), 188-204.
Olivera, J. & Van Kerm, P. (2022), 'Public Support for Tax Policies in COVID-19 Times: Evidence from Luxembourg', International Tax and Public Finance, 29(6), 1395-1418.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2021), 'Intergenerational wealth transfers and wealth inequality in rich countries: What do we learn from Gini decomposition?', Economics Letters, 199, 10970.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2020), 'The Wealth of Families: The Intergenerational Transmission of Wealth in Britain in Comparative Perspective', Report to the Nuffield Foundation, Institute for New Economic Thinking, Oxford Martin School, University of Oxford.
Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2020), 'The intergenerational transmission of wealth in rich countries', VoxEU 19 September 2020, Centre for Economic Policy Research, London, UK.
Chauvel, L., Hartung, A., Bar-Haim, E. & Van Kerm, P. (2019), 'Income and Wealth Above the Median: New Measurements and Results for Europe and the United States', in K. Decancq & P. Van Kerm, What Drives Inequality?, Research on Economic Inequality27, Emerald Publishing Ltd, Bingley, pp.89-104.
Nolan, B., Morelli, S. & Van Kerm, P. (2018), 'Wealth Inequality', in B. Nolan, Generating Prosperity for Working Families in Affluent Countries, Oxford University Press, Oxford, UK, Ch.12, pp.312-334.
Carpantier, J.-F., Olivera, J. & Van Kerm, P. (2018), 'Macroprudential policy and household wealth inequality', Journal of International Money and Finance, 85(C), 262-277.
Cowell, F.A., Nolan, B., Olivera, J. & Van Kerm, P. (2017), 'Wealth, Top Incomes, and Inequality', in K. Hamilton & C. Hepburn, National Wealth: What is Missing, Why it Matters, Oxford University Press, Oxford, UK, Ch.8, pp.175-203.
Cowell, F.A. & Van Kerm, P. (2015), 'Wealth Inequality: A Survey', Journal of Economic Surveys, 29(4), 671-710.
Jäntti, M., Sierminska, E.M. & Van Kerm, P. (2015), 'Modeling the Joint Distribution of Income and Wealth', in T. Garner & K. Short, Measurement of Poverty, Deprivation, and Economic Mobility, Research on Economic Inequality23, Emerald Group Publishing Limited, pp.301-327.
Jäntti, M., Sierminska, E.M. & Van Kerm, P. (2013), 'The joint distribution of income and wealth', in J. Gornick & M. Jäntti, Economic Inequality in Cross-National Perspective, Social Inequality Series, Stanford University Press, USA.
D'Aguanno, M.C., Guio, A.-C. & Van Kerm, P. (2026), 'Working, yet poor: The dynamics behind Europe’s in-work poverty rate', LISER Policy Brief 2026-21, Luxembourg Institute of Socio-Economic Research.
Fusco, A. & Van Kerm, P. (2026), 'Poverty trends in Luxembourg 1985- 2023 — A race between the ‘middle’ and the ‘bottom’', LISER Policy Brief 2026-01, Luxembourg Institute of Socio-Economic Research.
D'Aguanno, M.C., Guio, A.-C. & Van Kerm, P. (2026), 'Cross-country evidence on the individual dynamics of in-work poverty in the EU', Economic Systems, 50(2), 101360.
Fusco, A. & Van Kerm, P. (2023), 'Measuring Poverty Persistence', in J. Silber, Research Handbook on Measuring Poverty and Deprivation, Edward Elgar Publishing, Cheltenham Glos , UK, Ch.18, pp.192-200.
Muller, A., Peluso, E., Van Kerm, P. & Laborderie, V. (2023), 'Inégalité et pauvreté', D'Lëtzebuerger Land.
Lisina, A. & Van Kerm, P. (2022), 'Understanding Twenty Years of Inequality and Poverty Trends in Russia', Review of Income and Wealth, 68(S1), 108-130.
Fusco, A., Gallo, G. & Van Kerm, P. (2021), 'Rotation Group Bias in the Estimation of EU Social Indicators', in A.-C. Guio, E. Marlier & B. Nolan, Improving the understanding of poverty and social exclusion in Europe, Publications Office of the European Union, Luxembourg, Ch.17, pp.295-312.
Jenkins, S.P. & Van Kerm, P. (2017), 'How does attrition affect estimates of persistent poverty rates? The case of EU-SILC', in A.B. Atkinson, A.-C. Guio & E. Marlier, Monitoring Social Inclusion in Europe, Eurostat, European Commission, Luxembourg, Ch.22, pp.402-417.
Hildebrand, V.A., Pi Alperin, M.N. & Van Kerm, P. (2017), 'Measuring and accounting for the deprivation gap of Portuguese immigrants in Luxembourg', Review of Income and Wealth, 63(2), 288-309.
Jenkins, S.P. & Van Kerm, P. (2014), 'The Relationship between EU Indicators of Persistent and Current Poverty', Social Indicators Research, 116(2), 611-638.
Jenkins, S.P. & Van Kerm, P. (2011), 'Patterns of persistent poverty: evidence from EU-SILC', ISER Working Paper 2011-30, Institute for Social and Economic Research, University of Essex, Colchester, UK.
Van Kerm, P. & Villeret, A. (2007), 'Difficile de joindre les deux bouts? La satisfaction des ménages luxembourgeois quant à leur situation financière', Vivre au Luxembourg -- Chroniques de l'enquête PSELL-3 36, CEPS/INSTEAD, Differdange, Luxembourg.
Van Kerm, P. (2004), 'Une évaluation économétrique des flux vers et hors de la pauvreté en Belgique', in R. Doutrelepont, D. Mortelmans & M.-T. Casman, Onze ans de vie en Belgique. Analyses socio-économiques à partir du Panel Démographie Familiale, Science et société, Academia Press, Gent, Belgium, pp.251-272.
Van Kerm, P. (2002), 'Une perspective longitudinale sur la pauvreté en Belgique', Reflets et perspectives de la vie économique, 2002/03, 23-36.
Van Kerm, P. (2002), 'How much low income turnover is there in Belgium?', in P. Moyes, C. Seidl & A. Shorrocks, Inequalities: Theory, experiments and applications, Journal of Economics supplement issues9, Springer-Verlag, Vienna, Austria, pp.341-363.
Gevers, L. & Van Kerm, P. (2000), 'Evolution récente de la dispersion des revenus et de la pauvreté en Belgique. Que nous apprennent les bases de données socio-économiques fédérales?', in B. Jurion & P. Pestieau, Finances publiques, finances privées, Les Editions de l'Université de Liège, Belgium, pp.59-74.
Van Kerm, P. (1999), 'Computing poverty indices', Stata Technical Bulletin, 48, 29-33.