Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245355 
Year of Publication: 
2021
Series/Report no.: 
CESifo Working Paper No. 9174
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Does parental wealth inequality impact next generation labor income inequality? And does a tax on parental wealth affect the labor income distribution of the next generation? We tackle both questions empirically using detailed intergenerational data from Norway, focusing on effects on wages rather than capital income. Results suggest that a net wealth of NOK 1 million increases wages of the children by NOK 14,000. Children of wealthy parents also have a higher labor income mobility. The estimated hypothetical wage distribution without the wealth tax is more unequal. Moreover, suggestive evidence indicates parental wealth is associated with higher labor risk taking.
Subjects: 
wealth tax
equality of opportunity
parental wealth
income mobility
inequality
redistribution
JEL: 
D31
D63
H24
Document Type: 
Working Paper
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