Center for Economic and Social Research
University of Southern California
Institutional Affiliation: Office of Financial Research
Information about this author at RePEc
NBER Working Papers and Publications
|May 2018||Genetic Endowments and Wealth Inequality|
with Nicholas W. Papageorge, Kevin Thom: w24642
We show that genetic endowments linked to educational attainment strongly and robustly predict wealth at retirement. The estimated relationship is not fully explained by flexibly controlling for education and labor income. We therefore investigate a host of additional mechanisms that could help to explain the gene-wealth gradient, including inheritances, mortality, savings, risk preferences, portfolio decisions, beliefs about the probabilities of macroeconomic events, and planning horizons. The associations we report provide preliminary evidence that genetic endowments related to human capital accumulation are associated with wealth not only through educational attainment and labor income, but also through a facility with complex financial decision-making. Our study illustrates how econo...