Sharing the wealth: the effect of siblings on adults' wealth ownership.

Published

Journal Article

Inequality in wealth has been well-documented, but its causes remain uncertain. Family processes in childhood are likely to shape adults' wealth accumulation, but these factors have attracted little attention. I argue that family size matters: children from larger families accumulate less wealth than do those from smaller families. Siblings dilute parents' finite financial resources and nonmaterial resources, such as time. This diminishment of resources reduces educational attainment, inter vivos transfers, and inheritance. Reduced educational attainment and transfers alter financial behavior; saving; and, ultimately, adults' wealth. I demonstrate that sibship size is associated with lower overall wealth in adulthood and that parents' resources and education, respondent's education, financial transfers, and financial behavior all mitigate the effect of siblings. Sibship size also reduces the likelihood of receiving a trust account or an inheritance and decreases home- and stock ownership. The findings provide important insights into early family processes that shape wealth accumulation and inequality.

Full Text

Duke Authors

Cited Authors

  • Keister, LA

Published Date

  • August 2003

Published In

Volume / Issue

  • 40 / 3

Start / End Page

  • 521 - 542

PubMed ID

  • 12962061

Pubmed Central ID

  • 12962061

Electronic International Standard Serial Number (EISSN)

  • 1533-7790

International Standard Serial Number (ISSN)

  • 0070-3370

Digital Object Identifier (DOI)

  • 10.1353/dem.2003.0026

Language

  • eng