This paper combines the Aiyagari/Huggett–type standard incomplete markets model with the Arrow/Romer approach to growth to analyze feedback effects between growth and inequality, both endogenously determined in equilibrium. We derive conditions on existence/ nonexistence of balanced growth...

In an overlapping generations model with finite lifetimes sustained growth is possible if there is a positive risk of death. A redistribution occurs when non-altruistic parents leave unintended bequests to their children

How much of income inequality is due to initial opportunities relative to adult income risk? What factors determine intergenerational mobility? We study these questions with particular interest in the impact of two family choices: fertility and transfers. Fertility rates, which are higher for...

We evaluate a temporary public sector employment program targeted at individuals with weak labor market attachment, applying dynamic inverse probability weighting to account for dynamic selection. We show that the program is successful in increasing employment and reducing social assistance....

The intergenerational elasticity (IGE) is the most common parameter reported in the intergenerational mobility literature. This paper proposes a "local" intergenerational mobility parameter (LIGE) that allows the effect of parents' income to vary across different values of parents' income. We...

How does a large structural change to the labor market affect education investments made at young ages? Exploiting differential exposure to the national decline in routine-task intensity across local labor markets, we show that the secular decline in routine tasks causes major shifts in...

Many authors have recently suggested that the heterogeneity in the quality of early education may be one of the key mechanisms underlying the intergenerational persistence of earnings. This paper estimates the effect of a major educational reform on the intergenerational income mobility in...

We study the importance of the extended family - the dynasty - for the persistence in inequality across generations. We use data including the entire Swedish population, linking four generations. This data structure enables us to identify parents' siblings and cousins, their spouses, and the...

We study the importance of the extended family - the dynasty - for the persistence in inequality across generations. We use data including the entire Swedish population, linking four generations. This data structure enables us to identify parents' siblings and cousins, their spouses, and the...

We study the importance of the extended family - or the dynasty - for the persistence in human capital inequality across generations. We use data including the entire Swedish population, linking four generations. This data structure enables us to - in addition to parents, grandparents and great...