How do we explain why some societies remain highly unequal? The French revolutionaries argued that unequal inheritance was the problem behind aristocratic dominance and strict hierarchies, so they mandated equal distribution among siblings. Did this fix inequality in Germany?
This article examines historical variations in inheritance laws across German municipalities. We find a clear correlation: places with long-standing equitable inheritance customs elect more women to political councils and have fewer aristocrats populating their social elite.
But here's the twist - counterintuitively, we also show that these regions actually feature higher income inequality today! Using regression analysis on historical datasets tracing back centuries, our findings point to two mechanisms:
- Wealth Redistribution: Equal inheritance forces wealth distribution beyond the family unit
- Merit-Based Advantage: Equity creates a system where talent gets rewarded rather than status
Our research suggests that egalitarian policies may sometimes have unexpected consequences. The French revolution's goal of leveling society through equal inheritance created incentives for meritocracy, but it also inadvertently shaped regional economic structures.
