Intergenerational transfers and social class: Inter-vivos transfers as means of status reproduction?*

Abstract

Research on social stratification and the transmission of inequality has largely disregarded the role of inter-vivos transfers to adult children. At the same time, the role of social class has been neglected in the literature on intergenerational transfers. In an attempt to link the two research strands, the article assesses the association between occupational social class and parental transfer behaviour. Estimation results from a tobit censored regression model on the basis of data from SHARE show substantial class differences in financial transfers. Existing theories on intergenerational transfers are largely unable to account for this finding. Even after income and wealth are controlled for, service-class parents transfer more resources to their adult children than do working-class parents. We explain the observed class effects in parental transfer behaviour by rethinking inter-vivos transfers as a means of status reproduction.