Understanding Income Dynamics : Identifying and Estimating the Changing Roles of Unobserved Ability , Permanent and Transitory Shocks

@inproceedings{Lochner2013UnderstandingID,
  title={Understanding Income Dynamics : Identifying and Estimating the Changing Roles of Unobserved Ability , Permanent and Transitory Shocks},
  author={Lance J. Lochner and Youngki Shin},
  year={2013}
}
Sustained growth in earnings and wage inequality over the past few decades (most notably in the U.S. but also in many other developed countries) has generated widespread interest in both its causes and consequences, spurring large bodies of research in labor economics, macroeconomics, and growth economics.1 Perhaps, the greatest efforts have been devoted to understanding the role of skills, observed and unobserved, in accounting for the evolution of wage and earnings inequality. There is… CONTINUE READING