In this paper we build on the Cunha, Heckman and Navarro (2005) and show that labor earnings risk has increased considerably over time and it has increased more for lower skill groups than higher skill groups

his paper presents formal models of child development that capture the essence of recent findings from the empirical literature on child development. The goal is to provide theoretical frameworks for interpreting the evidence from a vast empirical literature, for guiding the next generation of...

In this paper we show how one can separately identify the information sets of agents, how the information sets evolve over the life cycle, as well as the distribution of risk aversion. We estimate the model using white males from NLSY/79.

This paper builds on methods developed to estimate ex ante inequality. We use a life cycle fertility model to estimate how much people know about their income at different points in time. We exploit the key idea that if people know something and use that information in their fertility decisions,...

Brazil is not prepared to cope with population ageing. In fact, the country already spends a high proportion of GDP on retirement benefits given its income level and its still relatively young population. As a consequence, the deficit of the social security system has steadily increased since...

The recent literature on estimation of structural models relies heavily on the specification of dynamic factors to control for unobserved heterogeneity across agents. A general filtering technique is the Particle Filtering, as shown in Fernandez-Villaverde and Rubio-Ramirez (2007). The main...

I develop an estimable model of fertility, labor supply, and human capital formation of children. The model is estimated using the CNLSY/79, NLSY/79, and PSID data sets. I use the model to evaluate the impact of taxation and welfare on labor supply, fertility, and human capital of children.

This paper formulates and estimates a model of the evolution of child cognitive and noncognitive skills as determined by parental investments at different stages of the life cycle. We estimate the elasticity of substitution between contemporaneous investments and inherited stocks of skills to...

In general, economic models of human development assume that mothers have rational expectations about the technology of skill formation, that is, about the process that determines how their offspring develop skills in socio-emotional and cognitive domains. This assumption implies that all women...