Journal ArticleDOI
Inheritance and Labor Supply
TLDR
The authors investigated the labor disincentive caused by inheritance and found that inheritances do not lead to large reductions in the labor supply of men and married women, but again the effect is small.Abstract:
Using data from the Michigan Panel Study of Income Dynamics and from Federal Estate Tax returns, this paper investigates the labor disincentive caused by inheritance. The results are of interest for several reasons. Whether or not inheritances are a strong labor disincentive figures prominently in the controversy surrounding the relative importance of inheritances and life-cycle savings as sources of U.S. wealth. Also, the size of the disincentive is important in determining the relationship between inheritance and inequality. Our results indicate that inheritances do not lead to large reductions in the labor supply of men and married women. Family consumption increases after an inheritance, but again the effect is small.read more
Citations
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Book ChapterDOI
The Economics of Migrants' Remittances
TL;DR: A review of the recent theoretical and empirical economic literature on migrants' remittances can be found in this article, where a mixture of individualistic (e.g., altruism, exchange) and familial motivations explain the likelihood and size of remittance; some studies also find evidence of moral hazard on the recipients' side and of the use of inheritance prospects to monitor the migrants' behavior.
Journal ArticleDOI
Stock Market Wealth and Consumption
TL;DR: In this paper, the authors explored the link between changes in the aggregate value of corporate stock and changes in consumer spending and found that after a change in stock market values, consumer spending is likely to rise by between one and two cents for each dollar increase in the value of stock.
Journal ArticleDOI
Motives for private transfers over the life cycle: An analytical framework and evidence for Peru
TL;DR: This paper found that transfer amounts received increase with recipient pre-transfer income, which contradicts a key prediction of the strong form of the altruism hypothesis but is consistent with exchange, and also found that capital market imperfections are likely to be an important cause of private transfers and that social security benefits ''crowd out' the incidence of private transfer.
Book
The Theory of Taxation and Public Economics
Louis Kaplow,Louis Kaplow +1 more
TL;DR: This chapter discusses the development of Normative Criteria for Social Welfare Function and its applications in the context of social security and welfare.
ReportDOI
Labor Supply: Are the Income and Substitution Effects Both Large or Both Small?
TL;DR: In this paper, the authors developed a theory of labor supply where income and substitution effects cancel, taking into account optimization over time, fixed costs of going to work, and interactions of labour supply decisions within the household.
References
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Journal ArticleDOI
The Strategic Bequest Motive
TL;DR: The authors developed a simple model of strategic bequests in which a testator influences the decisions of his beneficiaries by holding wealth in bequeathable forms and by conditioning the division of bequesques on the beneficiaries' actions.
Journal ArticleDOI
The sensitivity of an empirical model of married women's hours of work to economic and statistical assumptions
TL;DR: In this paper, a systematic analysis of several theoretic and statistical assumption s used in many empirical models of female labor supply is performed. But the two most important assumptions appear to be the Tobit assumption used to control for sel f-selection into the labor force and exogeneity assumptions on the worker's wage rate and her labor market experience.
Journal ArticleDOI
A Life Cycle Model of Female Labour Supply
Journal ArticleDOI
A Profitable Approach to Labor Supply and Commodity Demands over the Life-Cycle
ReportDOI
An Empirical Model of Labor Supply in a Life-Cycle Setting
TL;DR: The authors formulates and estimates a structural intertemporal model of labor supply using theoretical characterizations derived from an economic model of lifetime behavior, and a two-step empirical analysis yields estimates of inter-temporal and uncompensated substitution effects which provide the information needed to predict the response of hours of work to life-cycle wage growth and shifts in the lifetime wage path.