Multigenerational transmission of wealth. Florence 1403-1480

By using hand-collected data on households' wealth assessments, we study multigenerational mobility in Florence during the late Middle Ages. We find that Florentine society was more mobile than one would expect but also that multigenerational mobility was lower than implied by two generations estimates. We reconcile these findings by showing their consistency with a model where wealth transmission is governed by an unobserved latent factor. We also show that, given our estimates, this model is compatible with the long-run persistence obtained by previous studies. Finally, we find that participation in marriage networks and in politics correlates with persistence of the economic status across generations.

By using hand-collected data on households’ wealth assessments, we study multigenerational mobility in Florence during the late Middle Ages. We find that Florentine society was quite mobile but also that multigenerational mobility was lower than implied by two generations estimates. We reconcile these findings by showing their consistency with a model where wealth transmission is governed by an unobserved latent factor. We also show that, given our estimates, this model is compatible with the long-run persistence found by previous studies. Finally, we find that participation in marriage networks and in politics correlates with persistence of the economic status across generations.