SOEP Brown Bag Seminar

While inequalities in inter-vivos gifts and bequests between families are widely recognized as key drivers of wealth inequality, less is known about the unequal transmission of wealth within families. This study addresses this gap by asking: (1) To what extent are estates unequally divided? (2) How do estate portfolios, primogeniture, and patrilineality shape unequal estate division? (3) What is the impact of unequal estate division on inheritance inequality? Analyzing administrative data from the German inheritance and gift tax register (2007–2020), we find that 38 percent of estates are unequally divided between children. Unequal division is most pronounced at the top of the distribution and when business assets dominate the estate. Sons benefit rather than firstborn children, reflecting patrilineal practices. Overall inheritance inequality would be reduced by 8 percent if estates were divided equally. These findings shed novel light on how the family generates inequalities both within and across generations.