Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v107y2017i5p593-97.html
   My bibliography  Save this article

Earnings Inequality and Other Determinants of Wealth Inequality

Author

Listed:
  • Jess Benhabib
  • Alberto Bisin
  • Mi Luo
Abstract
We study the relation between the distribution of labor earnings and the distribution of wealth. We show, theoretically as well as empirically, that while labor earnings and precautionary savings are important determinants of wealth inequality factors, they cannot by themselves account for the thick tail of (the large top shares in) the observed distribution of wealth. Other determinants, like stochastic returns to wealth, as well as savings rates and rates of returns increasing in wealth, need to be accounted for.

Suggested Citation

  • Jess Benhabib & Alberto Bisin & Mi Luo, 2017. "Earnings Inequality and Other Determinants of Wealth Inequality," American Economic Review, American Economic Association, vol. 107(5), pages 593-597, May.
    • Handle: RePEc:aea:aecrev:v:107:y:2017:i:5:p:593-97
    Note: DOI: 10.1257/aer.p20171005
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/articles?id=10.1257/aer.p20171005
    Download Restriction: no
    File URL: https://www.aeaweb.org/articles/attachments?retrieve=etUb2Rc61iS9lUqRemJnhILTtBUgZBaV
    Download Restriction: no
    File URL: https://www.aeaweb.org/articles/attachments?retrieve=6FIn9x2Ob0WBZ5dKdiWLr3uuB9sXq0Zc
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    ---><---

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:107:y:2017:i:5:p:593-97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.