Accounting for the U.S. earnings and wealth inequality

Ana Castaneda, Javier Díaz-Giménez, José Víctor Ríos-Rull

Research output: Contribution to journalArticlepeer-review

281 Scopus citations

Abstract

We show that a theory of earnings and wealth inequality, based on the optimal choices of ex ante identical households that face uninsured idiosyncratic shocks to their endowments of efficiency labor units, accounts for the U.S. earnings and wealth inequality almost exactly.

Original languageEnglish (US)
Pages (from-to)818-857
Number of pages40
JournalJournal of Political Economy
Volume111
Issue number4
DOIs
StatePublished - Aug 2003
Externally publishedYes

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