Occupational Choice and Inequality Traps
AbstractThe paper presents a model where individuals decide to become workers or entrepreneurs in the presence of capital constraints and where individuals differ in wealth levels.� The model shows that the higher the initial level of inequality in wealth is, the lower the long run aggregate wealth of the economy and the higher the long run inequality will be.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number CSAE WPS/2010-08.
Date of creation: 01 Feb 2010
Date of revision:
Occupational choice; Wealth distribution and inequality;
Find related papers by JEL classification:
- D9 - Microeconomics - - Intertemporal Choice
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
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