Intergenerational Earnings Mobility, Inequality, and Growth

Ann Owen and David Weil

No 6070, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine a model in which per capita income, inequality, intergenerational mobility, and returns to education are all determined endogenously. Individuals earn wages depending on their ability, which is a random variable. They purchase an education with transfers received from their parents, and are subject to liquidity constraints. In the model, multiple steady state equilibria are possible: countries with identical tastes and technologies can reach differing rates of mobility, inequality, and per capita income. Equilibria with higher levels of output also have lower inequality, higher mobility, and more efficient distribution of education.

JEL-codes: J62 O40 (search for similar items in EconPapers)
Date: 1997-06
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published as Journal of Monetary Economics, 1998.

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Journal Article: Intergenerational earnings mobility, inequality and growth (1998)
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