This paper provides theory and evidence that worker effort has played an important role in the increase in income inequality in the United States between 1980 and 2016. The theory suggests that a worker needs to exert effort enough to pay the rental value of the physical and human capital, thus...

Despite having accumulated physical and human capital at significant rates, Latin America's growth has been generally disappointing. Successful growth episodes have been accompanied by surges in TFP, sound and stable macroeconomic policies, and fewer distortions and government interventions....

This paper constructs time series data on savings per type of agent for Chile during the period 1960-2012. It is found that the economy's average savings rate increased by 11 percentage points in the period 1985-2012 compared to 1960- 1984, with particularly pronounced growth in corporate...