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A New Framework for the Analysis of Inequality

Flavio Cunha and James Heckman

No 12505, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: D80 I30 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ltv
Date: 2006-09
Note: DAE IFM LS CH
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Published as Cunha, Flavio & Heckman, James, 2008. "A New Framework For The Analysis Of Inequality," Macroeconomic Dynamics, Cambridge University Press, vol. 12(S2), pages 315-354, September.

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Journal Article: A NEW FRAMEWORK FOR THE ANALYSIS OF INEQUALITY (2008) Downloads
Working Paper: A New Framework for the Analysis of Inequality (2007) Downloads
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