Intergenerational Earnings Mobility, Inequality, and Growth

Journal of Monetary Economics

Posted: 10 Mar 1998

See all articles by Ann L. Owen

Ann L. Owen

Hamilton College - Economics Department

David N. Weil

Brown University - Department of Economics; National Bureau of Economic Research (NBER)

Abstract

We study inequality, intergenerational mobility, and returns to education in a general-equilibrium model. Individuals earn wages depending on their education and their innate abilities. Education is purchased with transfers received from parents, while ability is a random variable which is independent across generations. The model generates multiple, history-dependent steady states. One steady state features low mobility, high inequality, and a low average level of education. The other has the opposite characteristics and also features a more efficient distribution of education.

JEL Classification: O40, J62, J31

Suggested Citation

Owen, Ann L. and Weil, David Nathan, Intergenerational Earnings Mobility, Inequality, and Growth . Journal of Monetary Economics. Available at SSRN: https://ssrn.com/abstract=60946

Ann L. Owen

Hamilton College - Economics Department ( email )

198 College Hill Road
Clinton, NY 13323
United States
315-859-4419 (Phone)
303-859-4477 (Fax)

David Nathan Weil (Contact Author)

Brown University - Department of Economics ( email )

Box B
Providence, RI 02912
United States
401-863-1754 (Phone)
401-863-1970 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Abstract Views
737
PlumX Metrics