Fairness Preferences over Parental Wealth Transfer

Abstract:

We study experimentally how spectators decide how much of the wealth inequality between donors will be passed on to beneficiaries. We find spectators consider the parental link to justify limiting redistribution between beneficiaries. This is true even in the absence of an active choice by the parent to pass down wealth to their child. While spectators consider inheritors of wealth to be less entitled to it than those whose wealth was gained through work, they are still rewarded for the merit of those from whom they inherit money. Our results have implications for the perpetuity of inequality across generations.

Johanna Mollerstrom, George Mason University