Tristan presented “Sources of Lifetime Inequality” by Huggett, Venutra, and Yaron (AER 2011)
Abstract:
“Is lifetime inequality mainly due to differences across people estab- lished early in life or to differences in luck experienced over the work- ing lifetime? We answer this question within a model that features idiosyncratic shocks to human capital , estimated directly from data, as well as heterogeneity in ability to learn, initial human capital, and initial wealth. We find that, as of age 23, differences in initial condi- tions account for more of the variation in lifetime earnings, lifetime wealth, and lifetime utility than do differences in shocks received over the working lifetime.”[embeddoc url=”https://blogs.uoregon.edu/macrogroup/files/2017/04/HugVenYar_2011-10w0zw0.pdf” download=”all” viewer=”google”]
Slides from the presentation are posted below: