This paper studies consumption and labor supply in a model where agents have partial insurance and face risk and …

A large empirical literature documents a rise in wage inequality in the American economy. It is silent on whether the … increase in inequality is due to greater heterogeneity in the components of earnings that are predictable by agents or whether … in the variance of returns to schooling is due to increased uncertainty. Using conventional measures of income inequality …

A striking feature of U.S. data on income and consumption is that inequality increases with age. Using both panel data … characteristics of idiosyncratic labor market risk. We find that uncertainty distributed throughout the working years accounts for 40 ….98 and unity. The joint behavior of earnings and consumption inequality, interpreted using our model, adds to the body of …

-Savage form, providing pareto efficient social demands for inequality. If there is not enough inequality to produce the socially … optimum stratification to begin with, inequality is socially manufactured. People voluntarily participate in gambles and … is a inequality …

inequality over the life cycle and of the individual-level degree of consumption insurance against persistent earnings shocks …. Richer earnings dynamics also imply lower welfare costs of earnings risk, but, as the canonical earnings process, do not …

) welfare-neutral. Only a small part of measured income mobility is due to either welfare-reducing income risk or welfare …

"Is inequality largely the result of the Industrial Revolution? Or, were pre-industrial incomes and life expectancies … inequality for 14 ancient, pre-industrial societies using what are known as social tables, stretching from the Roman Empire 14 AD … applies two new concepts in making those assessments -- what we call the inequality possibility frontier and the inequality …

inequality. Deregulation lowered income inequality by affecting labor market conditions, not by boosting the business income of … skilled and unskilled workers account for the bulk of the explained drop in income inequality"--National Bureau of Economic …