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Title: Search and the Sources of Life-Cycle Inequality
Resulting in 1 citation.
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Griffy, Benjamin S. |
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Search and the Sources of Life-Cycle Inequality International Economic Review published online (18 June 2021): DOI: 10.1111/iere.12522. Also: https://onlinelibrary.wiley.com/doi/10.1111/iere.12522 Cohort(s): NLSY79 Publisher: Blackwell Publishing, Inc. => Wiley Online Keyword(s): Armed Forces Qualifications Test (AFQT); Earnings; Job Search; Life Cycle Research; Panel Study of Income Dynamics (PSID); Unemployment; Wealth I study how initial wealth affects lifetime earnings inequality when labor markets are frictional. To do this, I construct a model life-cycle model with search frictions, incomplete markets, and endogenous human capital accumulation. In the model, incomplete markets prevent low-wealth workers from smoothing consumption, causing them to accept low pay jobs while unemployed. In anticipation, they build savings instead of human capital while employed. This amplifies the importance of initial wealth for life-cycle inequality. Using this model, I find that differences in initial wealth cause larger differences in lifetime earnings than either initial human capital or ability. |
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Bibliography Citation
Griffy, Benjamin S. "Search and the Sources of Life-Cycle Inequality." International Economic Review published online (18 June 2021): DOI: 10.1111/iere.12522.
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