consumption choice throughout the life-cycle. The model generates substantial rise in consumption inequality over the life …-cycle, which matches empirical observations (Deaton and Paxson 1994). Moreover, the shape of the age-inequality profile is non …

Changes in inequality of yearly earnings can arise from changes in the distribution of lifetime earnings (permanent …-sectional and long-run earnings inequality. These data enable us to examine earnings dynamics during the years 1979-1996 for the … indicate that although there are substantial differences in overall cross-sectional inequality across these countries, the …

This paper develops a political economy model to evaluate how inequality affects policies via the political process … this framework, we evaluate the response of social insurance policies to rising income inequality. An important feature of … dynamic political economy models that incorporate inequality is that policy outcomes affect the evolution of wealth …

Developing and newly industrialized countries that have experienced the sharpest increases in wage inequality are those … become the most skill-intensive Southern goods). This raises wage inequality in both the South and the North. We provide … empirical evidence that strongly supports this causal mechanism: Southern catch-up exacerbates Southern inequality by …