Arven etter … Konsekvensene av arveavgiftens opphevelse på formuesulikheten i Norge

Abstract

What are the redistributive consequences of removing the inheritance taxation? With persistently high levels of wealth inequality, there are arguments suggesting that inheritance tax could serve as an effective instrument to redistribute the concentration of wealth. However, the effect of inheritance tax on wealth inequality has received limited empirical attention. Thus, this thesis aims to examine the effects of removing inheritance taxation in Norway in 2014 on wealth inequality. I approach this by using two distinct designs of causal inference to estimate the effect at the micro- and macro levels. The first analysis utilizes the Synthetic Control Method, employing aggregate data from 1996 to 2022. Here, I use data from World Inequality Database (WID), OECD, and World Bank. The macro-level analysis indicates that the removal of the inheritance tax might not have had a substantial effect on wealth inequality. This outcome may be attributed to the influence of other factors and the relatively low inheritance tax rate prior to the removal. In the second analysis, the focus shifts to studying the effect of inheritance tax repeal on absolute wealth inequality among individuals who inherited wealth in 2013 and 2014, utilizing micro-level data from 2010 to 2021 through two difference-in-differences designs. I employ administrative data from Norway in these analyses. The primary findings suggest that the elimination of inheritance tax had an immediate effect on wealth mobility, but this effect did not remain statistically significant within a six-year period. However, a robustness test reveals an increase in the difference in absolute wealth between the two groups over time. This thesis underlines the importance of the measurement and operationalization of wealth inequality, as these factors can significantly influence the outcomes and lead to divergent conclusions regarding the impact of inheritance tax removal on wealth inequality.