Inheritance, Gifts and the Wealth Deficit of Low-Income Households

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 paper 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 no wealth. This and alternative or complementary policy responses to these wealth deficits merit the most serious attention. (Stone Center on Socio-Economic Inequality Working Paper)

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Inheritance, gifts and the accumulation of wealth for low-income households

Journal of European Social Policy ◽

10.1177/09589287211040419 ◽

2021 ◽

Vol 31 (5) ◽

pp. 533-548

Author(s):

Salvatore Morelli ◽

Brian Nolan ◽

Juan C Palomino ◽

Philippe Van Kerm

Keyword(s):

Low Income ◽

Transfer Scheme ◽

Wealth Transfer ◽

Policy Responses ◽

The Past ◽

Low Incomes ◽

Marked Decline ◽

Rich Countries ◽

Low Income Households

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.

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Low Income Households: Casualties of the Boom, Casualties of the Bust?

Social Policy and Society ◽

10.1017/s1474746411000431 ◽

2011 ◽

Vol 11 (1) ◽

pp. 81-91 ◽

Cited By ~ 4

Author(s):

Grahame Whitfield ◽

Chris Dearden

Keyword(s):

Economic Growth ◽

Financial Institutions ◽

Low Income ◽

Rapid Change ◽

Credit Crunch ◽

Low Incomes ◽

Economic Boom ◽

The Uk ◽

The Impact ◽

Low Income Households

This article reflects on research undertaken with low income households over a 12 month period following the ‘credit crunch’, a period characterised by rapid change to the financial landscape in the UK. It argues that people living on persistent low incomes were casualties of the economic ‘boom’ as they did not benefit from economic growth and of the ‘bust’ in that they most keenly felt the impact of the recession and the reaction of financial institutions to the new financial landscape. It concludes by arguing that, reflecting on the complexity of people's lives, addressing indebtedness requires a multi-faceted approach.

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Review of Facilities for Low-Income Countries - Supplement 1

Policy Papers ◽

10.5089/9781498340168.007 ◽

2012 ◽

Vol 2012 (59) ◽

Author(s):

Keyword(s):

Low Income ◽

Global Financial Crisis ◽

Policy Support ◽

Low Income Countries ◽

Short Term ◽

Policy Responses ◽

Cyclical Policy ◽

Econometric Analyses ◽

The Global Financial Crisis

This supplement aims to assess the economic impact of the Fund’s support through its facilities for low-income countries (LICs). It relies on two complementary econometric analyses: the first investigates the longer-term impact of Fund engagement—primarily through successive medium-term programs under the Extended Credit Facility (ECF) and its predecessors (and more recently the Policy Support Instrument (PSI))—on economic growth and a range of other indicators and socio-economic outcomes; the second focuses on the role of IMF shock-related financing—through augmentations of ECF arrangements and short-term and emergency financing instruments—on short-term macroeconomic performance. The empirical results shed some light on two channels through which different Fund facilities may have helped LICs respond to the global financial crisis—(i) by supporting a gradual buildup of macroeconomic buffers in the decades prior to the crisis and (ii) by providing liquidity support at the height of the crisis. The combination of strong pre-crisis buffers and crisis financing allowed LICs to pursue counter-cyclical policy responses that preserved spending and facilitated a rapid recovery.

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Development Initiatives, Micro-Enterprise Performance and Sustainability

International Journal of Financial Studies ◽

10.3390/ijfs6030074 ◽

2018 ◽

Vol 6 (3) ◽

pp. 74 ◽

Cited By ~ 5

Author(s):

Wan Mustapa ◽

Abdullah Al Mamun ◽

Mohamed Ibrahim

Keyword(s):

Low Income ◽

Training Programs ◽

Peninsular Malaysia ◽

Enterprise Performance ◽

Enterprise Development ◽

Working Capital ◽

Development Organizations ◽

Development Initiatives ◽

Low Income Households

Towards improving the socio-economic condition of low-income households, development organizations offer a repertoire of initiatives. This study focused on the impacts of access to working capital and enterprise development training programs, on the performance and sustainability of micro-enterprises owned and managed by low-income households, in the state of Kelantan, Peninsular Malaysia. The data of 450 micro-entrepreneurs, was randomly selected from the participants’ list of three development organizations servicing Kelantan: Amanah Ikhtiar Malaysia (AIM); National Entrepreneurs Economic Group Fund (TEKUN); and Malaysia Fisheries Development Board (LKIM). This study revealed several participation indicators (i.e., years of participation, total number of trainings, total number of training hours received, and number of center meetings or discussions attended, etc.), which have a positive effect on micro-enterprise performance and sustainability. However, the findings were inconclusive as one of the key participation indicators, ‘total amount of economic loans received’, showed a negative (not statistically significant) effect on micro-enterprise performance and sustainability. This study expanded the limited literature on micro-enterprise performance and sustainability, and the role of working capital and enterprise development training programs; thus providing a clearer understanding of the effectiveness of current development initiatives.

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Wasted Food in Low-Income Households: the Role of Abundance and Affection

Journal of Nutrition Education and Behavior ◽

10.1016/j.jneb.2015.04.122 ◽

2015 ◽

Vol 47 (4) ◽

pp. S46-S47

Author(s):

Gustavo Porpino ◽

B. Wansink

Keyword(s):

Low Income ◽

Low Income Households

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Undermining housing affordability for New York’s low-income households: The role of policy reform and rental sector restructuring

Critical Social Policy ◽

10.1177/0261018315624172 ◽

2016 ◽

Vol 36 (2) ◽

pp. 265-288 ◽

Cited By ~ 2

Author(s):

Justin Kadi ◽

Richard Ronald

Keyword(s):

Low Income ◽

Policy Reform ◽

Housing Affordability ◽

Rental Sector ◽

Low Income Households

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A Study on the Role of Social Support for Low-Income Households of Youths or Adults with Disabilities that Devoid of Cultural Capital

Korean Society for Rehabilitation of Persons with Disabilities ◽

10.16884/jrr.2016.20.4.55 ◽

2016 ◽

Vol 20 (4) ◽

pp. 55-78

Author(s):

Mi-Sun Ohem ◽

◽

Jee-Young Kwak ◽

Keyword(s):

Social Support ◽

Cultural Capital ◽

Low Income ◽

Adults With Disabilities ◽

Low Income Households

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Personal Savings for Those on Lower Incomes: Towards a New Framework for Assessing the Role of the State in Relation to Savings Schemes

Social Policy and Society ◽

10.1017/s1474746420000640 ◽

2021 ◽

pp. 1-16

Author(s):

James Gregory ◽

Andy Lymer ◽

Karen Rowlingson

Keyword(s):

Low Income ◽

Developed Countries ◽

Two Dimensions ◽

The State ◽

Role Of The State ◽

Low Incomes ◽

Seed Funding ◽

Initial Seed ◽

The Uk

This article explores the role of the state in helping households to save. Using the UK as an example of challenges faced in other developed countries, it develops a framework for comparing saving schemes along two dimensions: apparent normative motivation for the scheme and likely impact on savers of varying income levels. Using this framework, our analysis suggests that there is much greater state support for high-income savers than low-income savers, even after the recent introduction of the ‘Help to Save’ scheme. So, while this scheme has provided some support for this group, we propose ways to expand it through providing initial seed funding to each account and greater marketing and accessibility. We note, however, that an important way to help those on low incomes to save is to increase their incomes so they have more capacity to do so.

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