Economics at your fingertips  

Household Lifetime Inequality Estimates in the U.S. Labor Market

Luca Flabbi, James Mabli and Mauricio Salazar

A chapter in Inequality: Causes and Consequences, 2016, vol. 43, pp 45-82 from Emerald Publishing Ltd

Abstract: Abstract This paper provides household lifetime inequality indexes derived from representative U.S. labor market data. We obtain this result by using estimates of the household search model proposed by Flabbi and Mabli (2012). Inequality indexes computed on the benchmark model shows that inequality in utility values is substantially different from inequality in earnings and wages and that inequality at the cross-sectional level is significantly different from inequality at the lifetime level. Both results deliver original policy implications that would have not been captured without using our approach. In particular, we find that a counterfactual policy experiment consisting in a mean-preserving spread of the wage offers distributions increases lifetime inequality in wages and earnings but not in utility. When comparing inequality at the individual level between men and women, we find inequality in wages and earnings to be higher for husbands than wives but inequality in utility to be higher for wives. A counterfactual decomposition shows that the job offers parameters are the main source of the gender differential.

Keywords: Household search; lifetime inequality; structural estimation; J64; D63; C63 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers

Related works:
Working Paper: Household Lifetime Inequality Estimates in the U.S. Labor Market Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This item can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://www.emeraldgr ... ies.htm?id=0147-9121

Access Statistics for this chapter

More chapters in Research in Labor Economics from Emerald Publishing Ltd
Bibliographic data for series maintained by Charlotte Maiorana ().

Page updated 2022-05-17
Handle: RePEc:eme:rleczz:s0147-912120160000043020