The inheritance of Advantage
Some agents are better treated by the market than others. In our model this arises from statistical discrimination based on the observables on the background of an individual. Advantages thus created increase the intergenerational correlation of income. This has some strong implications. First, it implies that intergenerational mobility and income inequality should correlate negatively. Second, the amplication mechanism generated by advantages may produce a multiplicity of steady states. Third, the introduction of "meritocracy" (informative signals on talent) may actually decrease mobility due to general equilibrium effects: by increasing income dispersion, they also increase the value of background.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.EconomicDynamics.org/society.htm
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Hassler & Jose V. Rodriguez Mora & Joseph Zeira, 2007.
"Inequality and Mobility,"
ESE Discussion Papers
165, Edinburgh School of Economics, University of Edinburgh.
- Hassler, John & Rodríguez Mora, José Vicente & Zeira, Joseph, 2000. "Inequality and Mobility," CEPR Discussion Papers 2497, C.E.P.R. Discussion Papers.
- Hassler, John & Rodriguez Mora, Jose V. & Zeira, Joseph, 2002. "Inequality and Mobility," Working Paper Series rwp02-009, Harvard University, John F. Kennedy School of Government.
- John Hassler & José Vicente Rodríguez Mora & Joseph Zeira, 2003. "Inequality and Mobility," Working Papers 23, Barcelona Graduate School of Economics.
- Moro, Andrea & Norman, Peter, 2004.
"A general equilibrium model of statistical discrimination,"
Journal of Economic Theory,
Elsevier, vol. 114(1), pages 1-30, January.
- Moro,A. & Norman,P., 2001. "A general equilibrium model of statistical discrimination," Working papers 4, Wisconsin Madison - Social Systems.
- Fabian Lange, 2007. "The Speed of Employer Learning," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 1-35.
- Patrick J. Bayer & Peter Arcidiacono & Aurel Hizmo, 2010.
"Beyond Signaling and Human Capital: Education and the Revelation of Ability,"
10-51, Duke University, Department of Economics.
- Peter Arcidiacono & Patrick Bayer & Aurel Hizmo, 2010. "Beyond Signaling and Human Capital: Education and the Revelation of Ability," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 76-104, October.
- Peter Arcidiacono & Patrick Bayer & Aurel Hizmo, 2008. "Beyond Signaling and Human Capital: Education and the Revelation of Ability," NBER Working Papers 13951, National Bureau of Economic Research, Inc.
- Henry S. Farber & Robert Gibbons, 1991.
"Learning and Wage Dynamics,"
NBER Working Papers
3764, National Bureau of Economic Research, Inc.
- Joseph G. Altonji & Charles R. Pierret, 1997.
"Employer Learning and Statistical Discrimination,"
NBER Working Papers
6279, National Bureau of Economic Research, Inc.
- Joseph G. Altonji & Charles R. Pierret, . "Employer Learning and Statistical Discrimination," IPR working papers 97-18, Institute for Policy Resarch at Northwestern University.
- Joseph G. Altonji & Charles R. Pierret, 1997. "Employer learning and statistical discrimination," Working Paper Series, Macroeconomic Issues WP-97-11, Federal Reserve Bank of Chicago.
- Coate, S. & Loury, G.C., 1992.
"Will Affirmative Action Policies Eliminate Negative Stereotypes?,"
3, Boston University - Department of Economics.
- Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-40, December.
When requesting a correction, please mention this item's handle: RePEc:red:sed013:872. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann)
If references are entirely missing, you can add them using this form.