- Title
- The Carnegie Conjecture: Some Empirical Evidence
- Author(s)
- Douglas Holtz-Eakin Douglas Holtz-Eakin (Syracuse University)
- David Joulfaian David Joulfaian (U.S. Department of the Treasury)
- Harvey S. Rosen Harvey Rosen (Princeton University)
- Abstract
- This paper examines tax return-generated data on the labor force behavior of people before and after they receive inheritances. The results are consistent with Andrew Camegie's century-old assertion that large inheritances decrease a person's labor force participation. For example, a single person who receives an inheritance of about $150,000 is roughly four times more likely to leave the labor force than a person with an inheritance below $25,000. Additional, albeit weaker, evidence suggests that large inheritances depress labor supply, even when participation is unaltered.
- Creation Date
- 1992-03
- Section URL ID
- IRS
- Paper Number
- 302
- URL
- https://dataspace.princeton.edu/bitstream/88435/dsp01nc580m66w/1/302.pdf
- File Function
- Jel
- C45
- Keyword(s)
- inheritance, estate, labor supply
- Suppress
- false
- Series
- 1