Thursday 18 January 2018

Nearly one-sixth of each cohort will receive an inheritance larger than the amount the bottom half of the population earns through labour in a lifetime.

Inheritance did not come to an end: the distribution of inherited capital has changed, which is something else entirely. ... In the nineteenth century about 10% of a cohort inherited amounts greater than this [a lifetime income of those in the bottom half of income distribution]. This proportion fell to barely more than 2 percent for cohorts born in 1910-1920 and 4-5 percent for cohorts born n 1930-1950. According to my estimates, the proportion has already risen to about 12 percent of cohorts born in 1970-1980 and may well reach or exceed 15 percent for cohorts born in 2010-2020. In other words, nearly one-sixth of each cohort will receive an inheritance larger than the amount the bottom half of the population earns through labour in a lifetime.

T. Piketty, Capital in the 21st Century (2013), 420-1

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