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Life-Cycle Inequality: the Black and White Differential

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  • Giacomo De Giorgi
  • Luca Gambetti
  • Costanza Naguib

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.

Suggested Citation

  • Giacomo De Giorgi & Luca Gambetti & Costanza Naguib, 2023. "Life-Cycle Inequality: the Black and White Differential," Diskussionsschriften dp2301, Universitaet Bern, Departement Volkswirtschaft.
    • Handle: RePEc:ube:dpvwib:dp2301
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    More about this item

    Keywords

    Consumption; Income; Savings; Inequality; Persistence; Life-Cycle.;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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