A NEW FRAMEWORK FOR THE ANALYSIS OF INEQUALITY

Flavio Cunha and James J. Heckman

Macroeconomic Dynamics, 2008, vol. 12, issue S2, pages 315-354

Abstract: This paper presents a new framework for analyzing inequality that moves beyond the anonymity postulate. We estimate the determinants of sectoral choice and the joint distributions of outcomes across sectors. We determine which components of realized earnings variability are due to uncertainty and which components are due to components of human diversity that are forcastable by agents. Using our tools, we can determine how policies shift persons across sectors and outcome distributions across sectors.

Date: 2008
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Related works:
Working Paper: A New Framework for the Analysis of Inequality (2007)
Working Paper: A New Framework for the Analysis of Inequality (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:cup:macdyn:v:12:y:2008:i:s2:p:315-354_07

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