Top Incomes, Rising Inequality, and Welfare
AbstractThis paper develops a general-equilibrium model of skill-biased technological change that approximates the observed shifts in the shares of wage and non-wage income going to the top decile of U.S. households since 1980. Under realistic assumptions, we find that all agents can benefit from the technology change, provided that the observed rise in redistributive transfers over this period is taken into account. We show that the increase in capital’s share of total income and the presence of capital-entrepreneurial skill complementarity are two key features that help support the wages of ordinary workers as the new technology diffuses.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3984.
Date of creation: 2012
Date of revision:
income inequality; skill-biased technological change; capital-skill complementarity; redistribution; welfare;
Other versions of this item:
- Kevin Lansing & Agnieszka Markiewicz, 2012. "Top incomes, rising inequality, and welfare," Working Paper Series, Federal Reserve Bank of San Francisco 2012-23, Federal Reserve Bank of San Francisco.
- Kevin J. Lansing & Agnieszka Markiewicz, 2012. "Top Incomes, Rising Inequality, and Welfare," Tinbergen Institute Discussion Papers 12-114/IV, Tinbergen Institute.
- Kevin J. Lansing & Agnieszka Markiewicz, 2012. "Top incomes, rising inequality, and welfare," Working Paper, Norges Bank 2012/10, Norges Bank.
- Kevin J. Lansing & Agnieszka Markiewicz, 2013. "Top Incomes, Rising Inequality, and Welfare," CDMA Working Paper Series, Centre for Dynamic Macroeconomic Analysis 201304, Centre for Dynamic Macroeconomic Analysis.
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
You can help add them by filling out this form.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Top Incomes, Rising Inequality, and Welfare
by Christian Zimmermann in NEP-DGE blog on 2013-09-11 12:02:58
- Bullard, James B., 2014. "Income inequality and monetary policy: a framework with answers to three questions," Speech, Federal Reserve Bank of St. Louis 235, Federal Reserve Bank of St. Louis.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.