We develop and estimate a Ben-Porath model with labor supply in which workers make consumption, human capital investment, retirement, and labor supply decisions. While most work to date on the Ben-Porath model aims to explain the wage growth early in the lifecycle, there has been surprisingly...

Marriage has declined since 1960. The drop has been bigger for unskilled individuals versus skilled ones. Simultaneously, divorce has increased. More so for the non-college educated vis à vis the college educated. Additionally, assortative mating has risen. People are more likely to marry...

How important is financial development for economic development? A costly state verification model of financial intermediation is presented to address this question. The model is calibrated to match facts about the U.S. economy, such as intermediation spreads and the firm-size distribution for...

Union membership displayed a ∩-shaped pattern over the 20th century, while the distribution of income sketched a ∪. A model of unions is developed to analyze this phenomena. There is a distribution of firms in economy. Firms hire capital, plus skilled and unskilled labor. Unionization is a...