Opportunity and Inequality Across Generations
نویسندگان
چکیده
We analyze inequality and mobility across generations in a dynastic economy. Nurture, terms of bequests the schooling investment into next generation, is observable but draw nature ability hidden, stochastic persistent generations. calibrate model to U.S. data illustrate mechanisms through which nurture affect transmission income generations, thus complementing vast empirical literature. To provide benchmark for observed status quo, we solve social optimum planner weighs dynasties equally chooses optimal tax schedules subject incentive compatibility. Analyzing transition from calibrated steady state this optimum, find that insurance against intergenerational risk increases on path by making welfare family more dependent relative nature. The comes at cost less mobility. compare economies with simple history-independent subsidy system.
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ژورنال
عنوان ژورنال: Social Science Research Network
سال: 2022
ISSN: ['1556-5068']
DOI: https://doi.org/10.2139/ssrn.4114618