Occupational Choice and Inequality Traps

The paper presents a model where individuals decide to become workers or entrepreneurs in the presence of capital constraints and where individuals differ in wealth levels. The model shows that the higher the initial level of inequality in wealth is, the lower the long run aggregate wealth of the economy and the higher the long run inequality will be.

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Year of publication:	2010
Authors:	Gutierrez-Romero, Roxana
Institutions:	Centre for the Study of African Economies (CSAE), Department of Economics
Subject:	Occupational Choice \| Wealth distribution and Inequality

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Extent:	application/pdf
Series:	CSAE Working Paper Series.
Type of publication:	Book / Working Paper
Language:	German
Notes:	Number 2010-08
Classification:	D9 - Intertemporal Choice and Growth ; D31 - Personal Income, Wealth and Their Distributions ; D50 - General Equilibrium and Disequilibrium. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009642355