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The long and the short of it: inheritance and wealth in Ireland

Author

Listed:
  • Simone Arrigoni

    (Trinity College Dublin
    Central Bank of Ireland)

  • Laura Boyd

    (Central Bank of Ireland)

  • Tara McIndoe-Calder

    (Central Bank of Ireland)

Abstract

Inheritances matter for wealth accumulation and are often central to policy debates on wealth taxes. Using household level survey data, this paper shows that up to 2020 over one-third of households in Ireland had inherited wealth, the cumulative value of which (€97 billion) accounts for approximately one sixth of current net wealth for these households. However, the impact of inheritance extends beyond its direct value as inheritors tend to be wealthier, with a greater ownership of property. Our analysis shows that inheritances in Ireland contribute little to wealth inequality, and may even have reduced it over time, in line with existing findings for Britain and the United States. Tentative evidence suggests that mechanisms behind this wealth equalising effect may be (i) the importance of inheritances for the acquisition of property assets for middle-wealth households, (ii) the rise of asset prices, especially house prices, and (iii) substitution from employee income to rental income among inheritors.

Suggested Citation

  • Simone Arrigoni & Laura Boyd & Tara McIndoe-Calder, 2025. "The long and the short of it: inheritance and wealth in Ireland," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 23(1), pages 119-142, March.
    • Handle: RePEc:spr:joecin:v:23:y:2025:i:1:d:10.1007_s10888-024-09638-5
    DOI: 10.1007/s10888-024-09638-5
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    Keywords

    Intergenerational transfers; Inheritances; Wealth inequality; HFCS; Gini;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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