scholarly journals An Economic Perspective on the Intergenerational Transmission of Wealth Inequality

2021 ◽  
Vol 39 (5) ◽  
pp. 391-400
Author(s):  
Kefei Lyu ◽  
Xiaoxuan Niu ◽  
Yucheng Zhou

Intergenerational transmission of wealth is a long-standing component of society. With the current accelerated economic development, the forms of wealth transmission and the ways in which it affects individuals’ lives have gradually become more complicated. In this article, we explore the economic performance and basic flow patterns of intergenerational transmission. We first discuss the key factors of personal and family wealth accumulation. We then consider how social performance affects the phenomenon of intergenerational transmission and the macro-channels of the current transmission mode. Finally, while intergenerational transmission is widespread in society, its importance has not attracted widespread attention from socioeconomic researchers and this paper makes suggestions for further study of the phenom ena. Our main conclusion is that in current society, intergenerational transmission both directly and indirectly influences the lives of members of society in multiple ways, such as through income, employment and education. If a basic understanding of the phenomenon of intergenerational transmission can be established, it will assist people in making relevant decisions more scientifically and allow them to have a fairer life experience.

Author(s):  
J. Louis Spencer ◽  
W. David Winner

This chapter presents the development of a scale that measures vision conflict, which refers to the disparity between what a minister anticipates a ministry to be like versus the real-life experience. Vision conflict is correlated with four similar phenomena, including role ambiguity, negative job satisfaction, negative values congruence, and negative ability-job fit. The scale addresses key factors that may affect pastoral terminations and exits from church ministry. It also encourages the understanding of critical elements that hinder pastoral effectiveness and create a stronger resilience to exiting the ministry.


2017 ◽  
Vol 47 (1) ◽  
pp. 32-57
Author(s):  
Scott S. Condie ◽  
Richard W. Evans ◽  
Kerk L. Phillips

This article examines Thomas Piketty’s thesis that there are no natural limits on the accumulation of wealth. We undertake our examination in the context of a simple general equilibrium model with infinitely lived dynasties. We show that extreme wealth accumulation does not happen in general equilibrium unless capital and labor are substitutes, an assumption which also leads to unbalanced growth. We also show that even with unbalanced growth, differences in rates of return and effective labor are not sufficient to cause unbounded inequality. Only permanent savings rate differences can lead to extreme wealth concentration. Finally, we show that while a flat wealth tax will not eliminate extreme wealth concentration, both a graduated wealth tax and a flat income tax will.


Divested ◽  
2020 ◽  
pp. 137-156
Author(s):  
Ken-Hou Lin ◽  
Megan Tobias Neely

This chapter focuses on how finance has transformed household wealth—a trend with long-term implications for how social-class inequality becomes entrenched. It first reviews the uneven distribution of wealth in the United States. Wealth inequality has risen since the last quarter of the 20th century. Today, fewer American families have sufficient means to accumulate wealth over time, and the concentration of capital in the hands of a select few has widened the fault line between the richest and the rest. The chapter also examines how the distribution of wealth has changed across generations—more precisely, what social scientists call “cohorts.” That is, wealth for the baby boomer generation differs greatly from wealth among the millennials. Since wealth accumulation develops over the course of a person’s life, families in young adulthood and near retirement are considered.


2020 ◽  
Vol 156 (1) ◽  
Author(s):  
Ursina Kuhn

Abstract Entitlements for social security and occupational pensions present a major wealth component and play a central role for financial security. However, most individual-level data lacks information on pension wealth. By linking various data sources, this contribution estimates the present value of future pension entitlements in Switzerland for statutory pensions, occupational pensions and third pillar accounts and analyses the distribution of augmented wealth, which combines pension wealth and net worth. The CH-SILC survey from 2015 is used to estimate real assets, financial assets and pension wealth of retired individuals. The pension entitlements of non-retired individuals are simulated on the basis of their earning history from administrative records following the accrual method and assuming a real discount rate of 2%. When pension wealth is added to net worth, average wealth doubles, and the Gini-coefficient declines by 26%. The equalising effect is particularly strong for social security pensions. The wealth distribution differs strongly between the three pillars of the pension system; there are also strong differences between gender and age groups. In Switzerland, wealth accumulation continues after retirement age.


Author(s):  
Céline Bessière

AbstractThis article describes how legal professionals and families contribute to the widening, legitimation and concealment of the gender wealth gap. It is based on ethnographic observation, study of legal files and statistical data on gender wealth inequality in France. Despite formally equal law, family wealth arrangements in moments of estate planning and marital breakdown tend to reproduce gender inequality. The main legal professionals involved are lawyers and notaries. In their interactions with family members, they carry out reversed accounting, a logic of practice in which the result comes first and computation comes after. As families and legal professionals strive to preserve real estate and businesses, or to minimize taxes, they produce inventories, estimations and distributions of assets which disadvantage women, even though shares appear to be formally equal. Female legal professionals, as well as female clients, may endorse this concern, and thus, also unwittingly contribute to the gender wealth gap.


Author(s):  
Muhammad Najihuddin Nasucha ◽  
Riazuddin Ahmed ◽  
Galad Mohamed Barre

The objective of this paper is to examine the viability of Istisna for project financing, with a special focus on its economic aspects and the risks associated with the said contract. This paper also aims to investigate the challenges faced by Islamic banks in adopting Istisna as a mode of project financing. This paper first provides an overview of Shariah-compliant project financing; it then discusses the characteristics of Istisna and barriers to Istisna implementation for construction and infrastructure project development. Economic and general legal considerations are key factors that influence the development of Istisna as project financing. This paper also seeks to explore ways to increase the use of Istisna.


Land ◽  
2021 ◽  
Vol 10 (12) ◽  
pp. 1404
Author(s):  
Shan Yu ◽  
Can Cui

With the increasing importance of financial loans in home purchases in urban China, the role of housing loans in the accumulation of housing wealth needs to be unraveled. Using the data from the 2017 China Household Finance Survey (CHFS), this study investigates the use of housing loans and their impact on housing wealth inequality. It has been found that people with higher socioeconomic status and institutional advantages benefit more from housing provident fund loans and are more likely to fully invoke different financing channels to accumulate housing wealth. On the contrary, disadvantaged groups have to resort to costly market-based mortgages to finance their home purchases. This leads them to fall further behind in housing wealth accumulation. The spatial stratification of housing wealth accompanying the urban hierarchy was also observed and found to be closely linked to the type of housing loans. In this increasingly financialized era, relying on financial instruments in the process of household asset accumulation may further amplify the existing wealth inequality among social groups.


2014 ◽  
Vol 20 (2) ◽  
pp. 466-481 ◽  
Author(s):  
Jess Benhabib ◽  
Alberto Bisin ◽  
Shenghao Zhu

We study the dynamics of the distribution of wealth in an economy with infinitely lived agents, intergenerational transmission of wealth, and redistributive fiscal policy. We show that wealth accumulation with idiosyncratic investment risk and uncertain lifetimes can generate a double Pareto wealth distribution.


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