We analyze inequality and mobility across generations in a dynastic economy. Nurture, in terms of bequests and the … schooling investment into the next generation, is observable but the draw of nature in terms of ability is hidden, stochastic … nature affect mobility and the transmission of income inequality across generations, thus complementing the vast empirical …

To examine how human capital accumulation influences both economic growth and income inequality, we carefully … central to the evolution of inequality during the development process. We characterise development thresholds when countries … that are consistent with the cross-country data on inequality and skill-premia. …

increasing inequality, within the group of college educated workers in particular. Further, we consider the comparative dynamics …

to entrepreneurship, and output. The calibration shows that optimism can explain the empirical puzzle of the low mean … returns to entrepreneurship compared to average wages. …