ESRI Discussion Paper Series No.347 The Effect of Inheritance Receipt on Individual Labor Supply: Evidence from Japanese Microdata
Abstract
This paper examines the effects of wealth on individual labor supply by considering inheritance receipts as an exogenous change in household wealth. Using Japanese microdata consisting of individuals aged 26–51, we find that (i) while men’s probability of working does not respond to inheritance receipt, women’s probability of working decreases; and (ii) in the case of most respondents the receipt of an inheritance seems to be unanticipated. We also test the unitary household model using information on respondents’ spouses. The results indicate that who received an inheritance influences the labor supply decision of each household member, meaning that we find no support for the unitary model.
Structure of the whole text(PDF-Format 1 File)
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page1Abstract
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page21. Introduction
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page52. Data
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page63. Empirical strategy and results
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page63.1 Benchmark case
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page93.2.The role of anticipating the parent’s death
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page103.3 Unitary model
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page124. Conclusion
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page14References
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page17Tables
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page17Table 1: Descriptive statistics of observations in our sample
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page18Table 2: Effect of inheritance receipt on employment
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page19Table 3: Effect of inheritance amount on employment
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page20Table 4: Effect of inheritance receipt or amount on employment (Cross analysis vs. vertical analysis)
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page21Figures
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page21Figure 1(a): Age profile of employment rate by birth-year cohort (Men)
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page21Figure 1(b): Age profile of employment rate by birth-year cohort (Women)
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page22Figure 2(a): Estimates of β2 for 9-year window (Men)
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page22Figure 2(b): Estimates of β2 for 9-year window (Women)
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