Inheritance - Sociological and Economic Effects of Inheritance Inequality

Sociological and Economic Effects of Inheritance Inequality

The degree to which economic status and inheritance is transmitted across generations determines one's life chances in society. Although many have linked one's social origins and educational attainment to life chances and opportunities, education cannot serve as the most influential predictor of economic mobility. In fact, children of well-off parents generally receive better schooling and benefit from material, cultural, and genetic inheritances. Likewise, schooling attainment is often persistent across generations and families with higher amounts of inheritance are able to acquire and transmit higher amounts of human capital. Lower amounts of human capital and inheritance can perpetuate inequality in the housing market and higher education. Research reveals that inheritance plays an important role in the accumulation of housing wealth. Those who receive an inheritance are more likely to own a home than those who do not regardless of the size of the inheritance.

Often, minorities and individuals from socially disadvantaged backgrounds receive less inheritance and wealth. As a result, minorities are more likely to rent homes or live in poorer neighborhoods, as well as achieve lower educational attainment compared whites in America. Individuals with a substantial amount of wealth and inheritance often intermarry with others of the same social class to protect their wealth and ensure the continuous transmission of inheritance across generations; thus perpetuating a cycle of privilege. For this reason, it can even be argued that one's inheritance places them in a specific social class position that requires a level of participation in certain activities that promote the oppression of lower-class individuals in terms of the social hierarchy and system of stratification.

Nations with the highest income and wealth inequalities often have the highest rates of homicide and disease (such as obesity, diabetes, and hypertension). A New York Times article reveals that the U.S. is the world's wealthiest nation, but "ranks twenty-ninth in life expectancy, right behind Jordan and Bosnia." This is highly attributed to the significant gap of inheritance inequality in the country. For this reason, it is clear that when social and economic inequalities centered on inheritance are perpetuated by major social institutions such as family, education, religion, etc., these differing life opportunities are transmitted from each generation. As a result, this inequality becomes part of the overall social structure.