Institutional Affiliation: Italian Ministry of Economy and Finance
|Wealth Transfers and Net Wealth at Death: Evidence from the Italian Inheritance Tax Records 1995–2016|
in Measuring and Understanding the Distribution and Intra/Inter-Generational Mobility of Income and Wealth, Raj Chetty, John N. Friedman, Janet C. Gornick, Barry Johnson, and Arthur Kennickell, editors
In this paper we describe a novel source of data on the full record of inheritance tax files in Italy, covering up to 63% of total deceased. The work documents a substantial rise in the share of inheritance and gifts as a share of total national income, from 8.4% in 1995 to 15.1% in 2016. Consistently with the substantial and increasing role of total personal net wealth in the economy, the weight of inheritance and gifts in Italy appears relatively high by international standards. Over the same period, total wealth left at death has also become increasingly concentrated.The millionaire estates were worth 14% of total estate in the mid-1990s and almost 25% in 2016. This paper also documents that revenues collected from the inheritance tax experienced a threefold decline from 0.15% to 0.05% ...
|"And Yet It Moves": Intergenerational Mobility in Italy|
with , : w25732
We link tax returns across two generations to provide the first estimate of intergenerational mobility in Italy based on administrative income data. Italy emerges as less immobile than previously depicted by studies using proxies for economic status or survey data with imputation procedures. This conclusion is robust with respect to a number of concerns, both standard when using administrative data and specific to our sample. A 10 percentile increase in parental income is associated with a percentile increase in child income between 2.5 and 3. The expected rank of children born from parents with income below the median is around 0.43. Upward mobility is higher for sons, first-born children, children of self-employed parents, and for those who migrate once adults. We uncover substantial geo...