Is There a Racialized Legacy in Wealth Across Generations? Evidence from Panel Study, 1984-2013
Abstract
The wealth accumulation of parents appears to be strongly determinative of thewealth holdings of their adult children. However, very little is known about the association of wealth that may occur across three generations of a family. This paper includes
a focus on the grandparent generation in order to provide a more complete picture on
economic transfers in the extended family. We use 1984 to 2013 data from the Panel
Study of Income Dynamics. We find that the children of white parents and grandparents may have higher wealth positions, but there is little intergenerational mobility in
net wealth. And, while the children of black parents and grandparents have wealth
positions that lag far behind that of white families, black children still also face very
little intergenerational mobility in net wealth.