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On the stationary distribution of income and wealth in a growing economy with endogenous labor supply

Author

Listed:
  • Kazuo Mino

    (Institute of Economic Research, Kyoto University)

Abstract

In the context of a perpetual youth model with capital, we explore the effect of the labor supply behavior of households on the stationary distributions of income and wealth. Assuming that the households have Greenwood--Hercowitz--Huffman preferences, we show that inequality in income and wealth distributions increase with the elasticity of labor supply.

Suggested Citation

  • Kazuo Mino, 2023. "On the stationary distribution of income and wealth in a growing economy with endogenous labor supply," Economics Bulletin, AccessEcon, vol. 43(1), pages 108-115.
    • Handle: RePEc:ebl:ecbull:eb-22-00776
    as

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    References listed on IDEAS

    as
    1. Benjamin Moll & Lukasz Rachel & Pascual Restrepo, 2022. "Uneven Growth: Automation's Impact on Income and Wealth Inequality," Econometrica, Econometric Society, vol. 90(6), pages 2645-2683, November.
    2. Charles I. Jones, 2015. "Pareto and Piketty: The Macroeconomics of Top Income and Wealth Inequality," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 29-46, Winter.
    3. Ascari, Guido & Rankin, Neil, 2007. "Perpetual youth and endogenous labor supply: A problem and a possible solution," Journal of Macroeconomics, Elsevier, vol. 29(4), pages 708-723, December.
    4. Greenwood, Jeremy & Hercowitz, Zvi & Huffman, Gregory W, 1988. "Investment, Capacity Utilization, and the Real Business Cycle," American Economic Review, American Economic Association, vol. 78(3), pages 402-417, June.
    5. Shuhei Aoki & Makoto Nirei, 2016. "Pareto Distribution of Income in Neoclassical Growth Models," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 20, pages 25-42, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    capital accumulation; endogenous labor supply; wealth inequity; Pareto distribution;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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