A New Framework for the Analysis of Inequality
Flavio Cunha and
No 2565, IZA Discussion Papers from Institute of Labor Economics (IZA)
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 forecastable by agents. Using our tools, we can determine how policies shift persons across sectors and outcome distributions across sectors.
Keywords: uncertainty; anonymity postulate; inequality; policy evaluation (search for similar items in EconPapers)
JEL-codes: I30 D80 (search for similar items in EconPapers)
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Published in: Macroeconomic Dynamics, 2008, 12 (Supplement 2), 315-354
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Journal Article: A NEW FRAMEWORK FOR THE ANALYSIS OF INEQUALITY (2008)
Working Paper: A New Framework for the Analysis of Inequality (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp2565
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