Strangely, bequests don't seem to increase wealth inequality

An interesting finding from Denmark, that bequests and inheritances don't appear to increase wealth inequality:

Our work suggests – contrary to the popular belief – that bequests need not increase inequality even if rich parents have rich kids. In fact, in Denmark, the post-bequest distribution is more equal (if measured in relative terms) than the pre-bequest distribution.

And as we have been assured for years concerning income inequality it is that relative measure which matters. It's also worth pointing out that Denmark is significantly (by 10 percentage points or so) more unequal in its wealth distribution than the UK.

This has an interesting effect on taxation policy of course: the prime objective of inheritance taxation is to try to stop fortunes elf-replicating down the generations. It's also an interesting comment on Thomas Piketty's insistence that inheritance will become all in the near future. It just doesn't seem to work out that way.

We can see that there could be a demographic structure which was more problematic. Say, something like China, where there's a whole generation which is likely to be the only descendant of four grandparents. That's likely to concentrate wealth. But a population that is roughly stable is going to have just as much splitting of wealth between children thus bringing down the amount that any one of them gains. But it is interesting, isn't it? If inheritance doesn't increase wealth concentration then why do we tax it with such moral fervour?