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Accounting for the U.S. Earnings and Wealth Inequality

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  • Ana Castaneda
  • Javier Diaz-Gimenez
  • Jose-Victor Rios-Rull

Abstract

We show that a theory of earnings and wealth inequality, based on the optimal choices of ex ante identical households that face uninsured idiosyncratic shocks to their endowments of efficiency labor units, accounts for the U.S. earnings and wealth inequality almost exactly.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 111 (2003)
Issue (Month): 4 (August)
Pages: 818-857

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Handle: RePEc:ucp:jpolec:v:111:y:2003:i:4:p:818-857

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Web page: http://www.journals.uchicago.edu/JPE/

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