Life-Cycle Inequality: the Black and White Differential

Giacomo De Giorgi, Luca Gambetti and Costanza Naguib

Diskussionsschriften from Universitaet Bern, Departement Volkswirtschaft

Abstract: With 20 years of PSID data, we document persistent racial di erentials in life-cycle consumption dynamics. Starting from similar positions in the consumption distribution Blacks end up in lower percentiles than Whites. Education, income, and wealth are three key drivers of these di erent dynamics. Blacks tend to save less, and hence have less bu er than the Whites to prevent them from falling in the lower part of the consumption distribution.

Keywords: Consumption; Income; Savings; Inequality; Persistence; Life-Cycle. (search for similar items in EconPapers)
JEL-codes: C3 D12 E21 (search for similar items in EconPapers)
Date: 2023-01
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