We consider a utility consistent static labor supply model with flexible preferences, a non-linear and possibly non-convex budget set, and a wage equation. Three stochastic error terms are introduced to represent respectively optimization and reporting errors, stochastic preferences, and...

In this paper we examine trends in the cross-sectional wealth distribution. We use two wealth definitions: net worth and financial wealth. We use data from the Socio-Economic Panel, a representative panel survey conducted by Statistics Netherlands. First, we describe the information on wealth...

It is well-known that individuals born in different periods of time (cohorts) exhibit different wealth accumulation paths. While previous studies have used cohort dummies to proxy for this fact, research in this area suffers from a serious identification problem, i.e., how to disentangle age,...