We build an agent-based model to study how coordination failures, credit constraints and unequal access to investment opportunities affect inequality and aggregate income dynamics. The economy is populated by households who can invest in alternative projects associated with different...

This chapter provides new evidence on educational inequality and reviews the literature on the causes and consequences of unequal education. We document large achievement gaps between children from different socio-economic backgrounds, show how patterns of educational inequality vary across...

The traditional criticism notwithstanding, we show that social mobility can, in principle, explain political income redistributions. Nonetheless, the social-mobility argument for redistribution is not satisfactory, as actual transition probabilities are not consistent with order-preserving...