Heterogeneity of the Carnegie Effect
Peer reviewed, Journal article
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Original versionThe Journal of human resources. 2019, 54 (3), 726-759. 10.3368/jhr.54.3.0915.7366R1
The Carnegie effect is the harm inherited wealth does to a recipient's work effort. Carnegie effect estimates are few, reflecting that such effects are hard to trace. Most previous studies rely on data from limited-size surveys. We use information from administrative data covering the entire Norwegian population, enabling an examination of the heterogeneity of the Carnegie effect. Estimation results show significant reductions in labor supply for recipients of large inheritances. We find that Carnegie effects differ according to transfer size, the recipient's age and eligibility for other transfer programs, and the existence of new heirs in the family chain.
Previous pre-print (pre-refereeing) article published in Discussion Papers No. 853, December 2016, Statistics Norway, Research Department. https://www.ssb.no/forside/_attachment/286151