limited network connections. The model implies that essentially similar workers can have markedly different wages and further … that the inequality of wages is partly explained by variations in the sizes of workers' networks. Our results indicate that … wages. We also show that reasonable differences in the average number of links between blacks and whites can explain the …

by pro-cyclical volatility in annual income. Permanent income, though, can smooth away such volatility and sort families … instead of annual income. However, the growth in income concentration cannot be explained by this volatility, as growth rates …