"In contrast with a growing literature on the drivers of aggregate volatility in developing countries, its consequences in terms of individual incomes have received less attention. This paper looks at the impact of cyclical output fluctuations and extreme output events (crises) on unemployment,...

The paper examines the effect of heterogeneity in individual human capital formation on cross-country income inequality. It considers a two-country model of overlapping generation heterogeneous economies with the following features: (1) individuals are heterogeneous with respect to inborn...

The paper studies the role of subsitence thresholds in the emergence of poverty traps, in a two-country overlapping generations model. If consumption is lower than the subsitence level, people may die after the first period of their life. Given the presence of a survival threshold, and given a...