Abstract
This study examines the effect of inheritance receipt on labor supply, exploring the empirical issues associated with inheritance expectations, informal caregiving, and liquidity constraints. The literature has not examined the possibility that ignoring the labor supply increase associated with the termination of caregiving can lead to an underestimation of the decrease in labor supply after inheritance. Based on a dataset of Japanese women, we found that inheritance decreased labor supply, primarily through changes in the extensive margin, particularly for recipients in their 50s and under 40 years of age with children. Unlike labor supply, household expenditures hardly change after an inheritance. Furthermore, unanticipated inheritances reduce labor supply compared to anticipated inheritances. Additionally, controlling for the termination of caregiving responsibilities resulted in a 25 % larger estimate of the wealth effect of inheritance receipt on labor supply. Finally, pre-inheritance liquidity constraints have no effect on changes in labor supply.
Funding source: Japan Society for the Promotion of Science
Award Identifier / Grant number: 19K01703, 20H01513, 20K01731
Acknowledgments
We thank three anonymous referees for their useful comments and suggestions. We are also grateful to Yoko Niimi, Haruko Noguchi, Jongsang Park, and Saki Sugano for their helpful comments on an earlier draft of this paper. We thank Taiyo Fukai, Kazuhito Higa, Masahiro Hori, Koichiro Iwamoto, Keiko Murata, Takeshi Niizeki, Yoshitomo Ogawa, Fumihiko Suga, participants at Hosei University, Seijo University, and other online workshops for their comments and support. We are grateful to the Panel Data Research Center at Keio University for providing the microdata from the Japanese Panel Survey of Consumers. Special thanks go to Ralph Paprzycki for his excellent English editing services. This work was supported by JSPS KAKENHI Grant Numbers 20K01731 (Hamaaki and Ibuka), 19K01703, and 20H01513 (Hamaaki). The views expressed in this study are personal and do not represent those of any of the institutions with which we are affiliated.
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Supplementary Material
This article contains supplementary material (https://doi.org/10.1515/bejeap-2022-0412).
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Artikel in diesem Heft
- Frontmatter
- Research Articles
- Women’s Labour Market Attachment and the Gender Wealth Gap
- Terror in the City: Local Terrorism and Firm Exports
- Achievement Effects of Dual Language Immersion in One-Way and Two-Way Programs: Evidence from a Statewide Expansion
- Test Endurance and Remedial Education Interventions: Good News for Girls
- Patent Clearinghouse and Technology Diffusion: What is the Contribution of Arbitration Agreements?
- How Much Competition is Enough Competition for Regulatory Forbearance?
- Waiting for the Weekend – The Adoption and Proliferation of Weekend Feeding (“BackPack”) Programs in Schools
- The Effect of Inheritance Receipt on Labor Supply: A Longitudinal Study of Japanese Women
- Letters
- Time Preferences and Lunar New Year: An Experiment
- Outsourcing Child Labor
- Future Focus is Surprisingly Linked with Prioritizing Work–Life Balance over Long-Term Savings
- Inmate Assistance Programs
- On Plaintiffs’ Strategic Information Acquisition and Disclosure during Discovery
Artikel in diesem Heft
- Frontmatter
- Research Articles
- Women’s Labour Market Attachment and the Gender Wealth Gap
- Terror in the City: Local Terrorism and Firm Exports
- Achievement Effects of Dual Language Immersion in One-Way and Two-Way Programs: Evidence from a Statewide Expansion
- Test Endurance and Remedial Education Interventions: Good News for Girls
- Patent Clearinghouse and Technology Diffusion: What is the Contribution of Arbitration Agreements?
- How Much Competition is Enough Competition for Regulatory Forbearance?
- Waiting for the Weekend – The Adoption and Proliferation of Weekend Feeding (“BackPack”) Programs in Schools
- The Effect of Inheritance Receipt on Labor Supply: A Longitudinal Study of Japanese Women
- Letters
- Time Preferences and Lunar New Year: An Experiment
- Outsourcing Child Labor
- Future Focus is Surprisingly Linked with Prioritizing Work–Life Balance over Long-Term Savings
- Inmate Assistance Programs
- On Plaintiffs’ Strategic Information Acquisition and Disclosure during Discovery