TY  - JOUR
AU  - Owen,Ann L.
AU  - Weil,David N.
TI  - Intergenerational Earnings Mobility, Inequality, and Growth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6070
PY  - 1997
Y2  - June 1997
UR  - http://www.nber.org/papers/w6070
L1  - http://www.nber.org/papers/w6070.pdf
N1  - Author contact info:
Ann Owen
Economics Department
Hamilton College
198 College Hill Road
Clinton, NY  13323-1218
Tel: 315-859-4419
E-Mail: aowen@hamilton.edu

David N. Weil
Department of Economics
Box B
Brown University
Providence, RI 02912
Tel: 401/863-1754
Fax: 401/863-1970
E-Mail: david_weil@brown.edu
AB  - We examine a model in which per capita income, inequality, intergenerational mobility, and returns to education are all determined endogenously.  Individuals earn wages depending on their ability, which is a random variable.  They purchase an education with transfers received from their parents, and are subject to liquidity constraints.  In the model, multiple steady state equilibria are possible: countries with identical tastes and technologies can reach differing rates of mobility, inequality, and per capita income.  Equilibria with higher levels of output also have lower inequality, higher mobility, and more efficient distribution of education.
ER  -