Heathcote, Jonathan; Storesletten, Kjetil; Violante, … - Federal Reserve Bank of Minneapolis - 2009
initial heterogeneity in wages and preferences. Equilibrium allocations and variances and covariances of wages, hours and … wages and hours, and cross-sectional data on consumption. The model is estimated on US data. Second moments involving hours … and consumption show that the rise in wage dispersion in the 1970s was effectively insured by households, while the rise …