which at first glance seems surprising given the estimation results in Table 2. One possible explanation for this result can be found in columns (6) and (8), in which the square of the inheritance amount is additionally included. In these columns, both the first- and the second-order term are significant, suggesting that there is a non-linear wealth effect on whether women work. That is, some women that received a relatively small inheritance stopped to work, while some women did not change their employment status despite receiving a large inheritance.

Columns (10) and (12) in Table 3 also show some interesting results. They indicate that the negative link between the inheritance amount and women's likelihood to work is mainly driven by those who received a larger inheritance than expected. To interpret the estimates, suppose the amount inherited is 7 million yen. Taking the estimates in column (10) as an example, the probability of working for those who inherited more than expected fell by about 25 percentage points more than that of those who received an inheritance that was as expected or smaller. This finding is consistent with standard labor supply models which predict that people reduce their labor supply when they become aware of changes in their lifetime resources, not the moment that they change in practice.

### 3.2 The role of anticipating the parent’s death

Until now, our investigation of individuals' labor supply response to inheritance receipt has focused on whether changes in the probability of being in work after the death of a parent are larger among those who received an inheritance than those who did not. However, inheritors may have anticipated the inheritance receipt before the death of their parent, so that their labor supply may have changed before the death of the parent and actual inheritance receipt. In this case, the estimates of the labor supply response in Tables 2 and 3 would be misleading.

Following Brown, Coile, and Weisbenner (2010) and Sugano and Matsuyama (2017), one way to examine this would be to use a question asking whether individuals thought they might receive an inheritance in the future. Tracking the same individuals over time, this would enable us to identify whether the inheritance was anticipated or not. Unfortunately, however, the FLS does not contain such information, so that we follow the alternative and more straightforward approach taken by Doorley and Pestel (2016) and Elimer, Erixson, and Ohlsson (2012), which examines whether individual's labor supply changed prior to an inheritance receipt. Specifically, we investigate whether changes in the probability of working in the period from t = -1 to $ t (= -4, -3, -2, 0, 1, 2, 3, 4) $ differ depending on whether an individual received an inheritance or not. If individuals anticipate receiving an inheritance, they might adjust their labor supply in $ t \leq -1 $ . This approach also enables us to examine if there is a time lag between the parental death and the labor supply response. Concretely, we estimate the following specification:

$$ E m p_{i t}=\beta_{0}+\beta_{1}\mathbf{1}(t=d)+\beta_{2}[\mathbf{1}(t=d)\times I n h e r_{i0}]+\boldsymbol{\beta}_{3}^{\prime}\mathbf{X}_{i t}+\alpha_{i}+\mu_{t}+\varepsilon_{i t}, $$