Wealth Distribution and Social Mobility in the Us: A Quantitative Approach

@article{Benhabib2019WealthDA,
  title={Wealth Distribution and Social Mobility in the Us: A Quantitative Approach},
  author={Jess Benhabib and Alberto Bisin and Mi (Meg) Luo},
  journal={ERN: Wages; Intergenerational Income Distribution (Topic)},
  year={2019}
}
We quantitatively identify the factors that drive wealth dynamics in the United States and are consistent with its skewed cross-sectional distribution and with social mobility. We concentrate on three critical factors: (i) skewed earnings, (ii) differential saving rates across wealth levels, and (iii) stochastic idiosyncratic returns to wealth. All of these are fundamental for matching both distribution and mobility. The stochastic process for returns which best fits the cross-sectional… 
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