Paolo Acciari, Facundo Alvaredo, Salvatore Morelli, 24 April 2021

Growing wealth disparities can have corrosive effects on equality of opportunity when they crystallise over time and turn into persistent disparities across generations. This column uses newly assembled data from Italian inheritance tax records to show that the wealth share of the top 1% (half a million individuals) increased from 16% in 1995 to 22% in 2016, and the share accruing to the top 0.01% (the richest 5,000 adults) almost tripled from 1.8% to 5%.  In contrast, the poorest 50% saw an 80% drop in their average net wealth over the same period. The data also reveal the growing role of inheritance and gifts inter vivos as a share of national income, as well as their increasing concentration at the top.

Patrick Chuard, Veronica Grassi, 12 October 2020

Equal opportunities are not only ethically desirable but also important for economic growth, and one important facet is intergenerational income mobility. Using administrative data, this column documents intergenerational income and educational mobility in Switzerland. It finds that income mobility in Switzerland is high, but education depends strongly on parental income. It goes on to ask whether the country's vocational training and education system might be the primary reason for this ‘high income, low educational mobility’ conundrum. 


CEPR Policy Research