The rise in inequality and poverty is one of the most important economicand social issues in recent times. But in contrast to the literature onindividual earnings inequality, there has been little work modelling (asopposed to documenting) household income dynamics. This is largelybecause of the...

This paper uses evidence from the US to examine the impact ofadolescent illegal consumption and violent behaviour on later lifechances. Specifically, we look at the effect of such behaviour by youngmen in late adolescence on productivity and household formation tenyears on. We find that alcohol...