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We study an economy where agents are heterogeneous in terms of observable wealth and unobservable talent. Adverse selection forces creditors to ask for collateral. We study the two-way interaction between rationing in the credit market and the wages offered in the labour market. Both pooling and...
Persistent link: https://www.econbiz.de/10010746194
This paper proposes a model of wealth distribution dynamics with a capital market imperfection and a production function where public capital is complementary to private capital. A unique invariant steady-state distribution is derived, with three social classes: subsistence workers, 'government...
Persistent link: https://www.econbiz.de/10010746233
This paper divides the population into two groups: the "inheritors" or "rentiers" (whose wealth is smaller than the capitalized value of their inherited wealth, i.e. who consumed more than their labor income during their lifetime); and the "savers" or "self-made men" (whose wealth is larger than...
Persistent link: https://www.econbiz.de/10010746502
projects (i.e. use less capital); although there is no poverty trap, the initial distribution may have long-run effects: there …
Persistent link: https://www.econbiz.de/10010746576
-income families, looking specifically at the effects on poverty, family expenditures, and child health and development. The paper … finds some commonalities but also some notable differences. Common to both countries is a sizable reduction in child poverty …, although the reduction in child poverty in the US has been less, and some families appear to have been left behind. Expenditure …
Persistent link: https://www.econbiz.de/10010884547
This paper presents a dynamic model of child labour supply in a farming household. The model clarifies the roles of land, income and household size, allowing labour and credit market imperfections. If labour markets are imperfect, child labour is increasing in farm size and decreasing in...
Persistent link: https://www.econbiz.de/10010884618
significant correlation and regression coefficients which suggest a link between inflation and inequality, while poverty appears …
Persistent link: https://www.econbiz.de/10010928756
Averaging methods are routinely used in order to limit biases resulting from the mismeasurement of permanent incomes. The Solon/Zimmerman estimator regresses a single-year measurement of the child's resources on a T-period average of the parents' income while the Behrman/Taubman estimator...
Persistent link: https://www.econbiz.de/10010928772
poverty compels work whereas a positive wage elasticity would favour the alternative view that children work because the … boys, consistent with the view that boys work on account of the compulsions of poverty. This is less clear in the case of … requires alleviation of the poverty of their households. Trade sanctions or bans on child labour may have deleterious …
Persistent link: https://www.econbiz.de/10010744915
well-known inequality indices. The same cannot be said, in respect of poverty indices, for the second-order stochastic … dominance criterion for poverty analysis introduced by Atkinson (1987). Indeed, two of the best known poverty indices, the head … provides a more comprehensive coverage of poverty indice. By establishing the relationship between welfare and poverty …
Persistent link: https://www.econbiz.de/10010744956