Heylen, Freddy; Kerckhove, Renaat Van de - Faculteit Economie en Bedrijfskunde, Universiteit Gent - 2014
We construct an overlapping generations model for an open economy where hours worked, human capital accumulation, income and welfare are all endogenous. Within each generation we distinguish individuals with high, medium or low innate ability. These differences in ability explain inequality in...