Spanish Millennials to Inherit More, Inequality to Rise

Spanish Millennials to Inherit More, Inequality to Rise

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Spanish Millennials to Inherit More, Inequality to Rise

A study reveals that Spanish millennials stand to inherit significantly more than previous generations, but this wealth increase will likely exacerbate existing inequality.

Spanish
Spain
Labour MarketEconomicsInequalityDemographicsWealthInheritance
Afi Emilio Ontiveros Foundation
What are the main findings of the study on inheritance in Spain?
The study, "Demography, Housing and Wealth Gaps," by the Afi Emilio Ontiveros Foundation, projects that Spanish millennials (born 1980-1996) will inherit an average of \u20ac250,000, exceeding what Baby Boomers received.
How will this increase in inherited wealth impact wealth inequality in Spain?
The study highlights that this wealth increase won't be evenly distributed, exacerbating existing inequality. Those without family wealth will be at a disadvantage, particularly among immigrants, who are expected to comprise 40% of the 45-65 age group by 2042.
How does real estate appreciation influence the projected inheritance amounts?
The substantial increase in inheritance is further amplified by real estate appreciation, which has seen a considerable rise in value over the last two decades in Spain.
What is the primary demographic factor contributing to increased inheritance amounts?
The increased inheritance is primarily due to demographics: a smaller number of children per family, resulting in fewer inheritors and a concentration of wealth.
What policy recommendations does the study offer to address the potential increase in wealth inequality?
The report suggests that fiscal and redistributive measures, such as taxes on large inheritances and donations, along with policies promoting affordable housing, are needed to mitigate the widening wealth gap.