We examine the determinants of income mobility and inequality in a Ramsey model with elastic labor supply and heterogeneous wealth and ability (labor endowment). Both agents with lower wealth and with greater ability tend to supply more labor, implying that labor supply decisions may have an...

We survey the literature on income mobility, aiming to provide an integrated discussion of mobility within and between generations. We review mobility concepts, descriptive devices, measurement methods, data sources, and recent empirical evidence.