Previous studies under the theme of income inequality have majorly focused upon the macroeconomic and human capital-based determinants. This paper attempts to identify and elaborate upon the effects of environmental variables, including pollution and climate change, in addition to the...

The paper studies the power of educational investments in relation to transfers for fostering lifetime income and for reducing income inequality in Germany. The welfare analysis is based on a model of age-dependent human capital accumulation, featuring dynamic complementarities in skill...