Private wealth is a crucial factor for the economic well-being of households.
Key determinants of private wealth include intergenerational wealth transfers
(gifts and inheritances), which are gaining importance since 1990, as research
suggests. We conduct a detailed investigation of the distribution of wealth
transfers in eight Euro-area countries. First, we investigate the patterns of
prevalence and level of past wealth transfers in the individual countries: Who
received transfers, and what is their present value in absolute terms? We find
that in most countries the percentages of households with a transfer as well
as the mean present value of those transfers is increasing along the
distribution of net wealth. Using a series of country-specific multivariate
regressions, we find that households with higher income and education levels
have both a higher probability of receiving transfers and higher absolute
transfer value. We then analyze the present value of transfers as a percent of
current net worth. Here, in relative terms, some of the results are reversed,
as the relative importance of intergenerational transfers does not increase
with the level of wealth or income. Using a fractional logit regression we
conclude that for higher income quintiles the share of current net worth due
to past intergenerational transfers tends to be decreasing