One empirical study of this is the Georgia land lottery of 1832. For the first generation, median wealth increased. But by the 2nd generation wealth reverted to the mean, and by the 3rd there was no measurable affect by lineage.
I have read "The Millionaire Next Door" and I mostly agree with its analysis of entrepreneurship and inter-generational wealth, it's hard to stay a millionaire.
But I think these empirical studies are a bit silly when they describe what happens in a system that accumulates wealth in the hands of a few. Once you pass a certain critical mass, it becomes very difficult to lose power. But if you are just moving up into a slightly higher tax bracket, it's still easier to revert to the mean. By definition most people will return to the mean.
The issue is what happens when people are in the long tail of ultra-wealth. How does it affect the health of our society?
But I think these empirical studies are a bit silly when they describe what happens in a system that accumulates wealth in the hands of a few. Once you pass a certain critical mass, it becomes very difficult to lose power. But if you are just moving up into a slightly higher tax bracket, it's still easier to revert to the mean. By definition most people will return to the mean.
The issue is what happens when people are in the long tail of ultra-wealth. How does it affect the health of our society?