You can manage bookmarks using lists, please log in to your user account for this.
Media type:
E-Article
Title:
The Effect of Inheritance Receipt on Labor Supply: A Longitudinal Study of Japanese Women
Contributor:
Hamaaki, Junya;
Ibuka, Yoko
Published:
Walter de Gruyter GmbH, 2024
Published in:
The B.E. Journal of Economic Analysis & Policy, 24 (2024) 4, Seite 1259-1305
Language:
English
DOI:
10.1515/bejeap-2022-0412
ISSN:
1935-1682
Origination:
Footnote:
Description:
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.