Inequality in an Equal Society

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Presentation transcript:

Inequality in an Equal Society Discussant: Conchita D’Ambrosio INSIDE, Université du Luxembourg

Aim The paper aims at quantify natural inequality, i.e. the share of observed inequality attributable to life-cycle profiles of income and wealth. Even if each individual has the same income at the same age, the fact that individuals of different ages coexist impose a level of income/wealth inequality into the economy.

The model They assume a process of labour income: Income at time t for individual born at time v = Economy wide wage rate in t * scaling factor

Implementation Compute the Gini coefficient replacing individual incomes with average incomes by cohort and weigh the cohorts averages by cohort sizes:t Why yearly sample means? Try also with yearly median, or mean/mean over all years.

The Inequality of Equal Mating Discussant: Conchita D’Ambrosio INSIDE, Université du Luxembourg

Aim The paper aims at analyzing the effects of mating on inequality decomposing the global effect of mating into sharing (pooling of two incomes) and flocking (similar individuals marry). Inequality among whom? Unit of analysis is individuals or couples? Is it incomes or earnings?

Show that the effect of sharing is larger that the effect of flocking Show that the effect of sharing is larger that the effect of flocking. Does this hold also for absolute inequality? What is the effect on the factors of income?